The rule in plain words
None of the values it checks in information on performing and non-performing exposures (I) can be negative.
EBA checks it for seven columns: instruments without significant increase in credit risk since initial recognition (Stage 1), instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (0057), purchased or originated credit-impaired financial assets (0058), instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (0109), credit-impaired instruments (Stage 3), impaired gross carrying amount or nominal amount, and purchased or originated credit-impaired financial assets (0900). And for 39 rows, from cash balances at central banks and other demand deposits (0005) to credit for consumption (0913). That makes 273 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Of which: Instruments without significant increase in credit risk since initial recognition (Stage 1): Cash balances at central banks and other demand deposits >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 18.00 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Information on performing and non-performing exposures (I) (F 18.00.a)
Rows
- 0005Cash balances at central banks and other demand deposits
- 0010Debt securities
- 0020Central banks
- 0030General governments
- 0040Credit institutions
- 0050Other financial corporations
- 0060Non-financial corporations
- 0070Loans and advances
- 0080Central banks
- 0090General governments
- 0100Credit institutions
- 0110Other financial corporations
- 0120Non-financial corporations
- 0130Of which: Small and Medium-sized Enterprises
- 0140Of which: Loans collateralised by commercial immovable property
- 0150Households
- 0160Of which: Loans collateralised by residential immovable property
- 0170Of which: Credit for consumption
- 0180DEBT INSTRUMENTS AT COST OR AT AMORTISED COST
- 0181Debt securities
- 0182Central banks
- 0183General governments
- 0184Credit institutions
- 0185Other financial corporations
- 0186Non-financial corporations
- 0191Loans and advances
- 0192Central banks
- 0193General governments
- 0194Credit institutions
- 0195Other financial corporations
- 0196Non-financial corporations
- 0197Households
- 0201DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME OR THROUGH EQUITY SUBJECT TO IMPAIRMENT
- 0330DEBT INSTRUMENTS OTHER THAN HELD FOR TRADING OR TRADING
- 0335DEBT INSTRUMENTS HELD FOR SALE
- 0900Of which: Small and Medium-sized Enterprises
- 0903Of which: Loans collateralised by commercial immovable property
- 0910Of which: Loans collateralised by residential immovable property
- 0913Of which: Credit for consumption
Columns
- 0056Of which: Instruments without significant increase in credit risk since initial recognition (Stage 1)
- 0057Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0058Of which: purchased or originated credit-impaired financial assets
- 0109Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0121Of which: Credit-impaired instruments (Stage 3)
- 0122Of which: impaired
- 0900Of which: purchased or originated credit-impaired financial assets
A worked example
The first of its checks, with simple numbers.
Cash balances at central banks and other demand deposits, instruments without significant increase in credit risk since initial recognition (Stage 1) must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_18.00.a,r0005,c0056,} >= 0The next five:
{F_18.00.a,r0005,c0057,} >= 0{F_18.00.a,r0005,c0058,} >= 0{F_18.00.a,r0005,c0109,} >= 0{F_18.00.a,r0005,c0121,} >= 0{F_18.00.a,r0005,c0122,} >= 0And 267 more, the same formula for the other cells it covers.
Other rules on F 18.00.a
- The sum of three rows must equal households, non-performing gross carrying amount (all sheets added up) (v5292_m)Warning
- Loans and advances: the sum of three rows must equal other financial corporations, non-performing gross carrying amount (all sheets added up) (v5290_m)Warning
- Loans and advances: the sum of three rows must equal credit institutions, non-performing gross carrying amount (all sheets added up) (v5289_m)Warning
- Loans and advances: the sum of three rows must equal general governments, non-performing gross carrying amount (all sheets added up) (v5288_m)Warning
- Loans and advances: the sum of three rows must equal central banks, non-performing gross carrying amount (all sheets added up) (v5287_m)Warning
- The sum of three rows must equal loans and advances, non-performing gross carrying amount (all sheets added up) (v5286_m)Warning
- The sum of three rows must equal non-financial corporations, non-performing gross carrying amount (all sheets added up) (v5285_m)Warning
- Debt securities: the sum of three rows must equal other financial corporations, non-performing gross carrying amount (all sheets added up) (v5284_m)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.