The rule in plain words
For debt securities: closing balance must equal assets without significant increase in credit risk since initial recognition (Stage 1) in F 04.03.1 plus assets without significant increase in credit risk since initial recognition (Stage 1) in F 04.04.1.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_12.01.A: Debt securities, Closing balance = F_04.03.1: Debt securities, Assets without significant increase in credit risk since initial recognition (Stage 1) + F_04.04.1: Debt securities, Assets without significant increase in credit risk since initial recognition (Stage 1)
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 12.01 and F 04.03.1 or F 04.04.1 as reported.
- 06This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Row
- 0050Debt securities
Column
- 0050Assets without significant increase in credit risk since initial recognition (Stage 1)
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Row
- 0010Debt securities
Column
- 0050Assets without significant increase in credit risk since initial recognition (Stage 1)
Movements in allowances and provisions for credit losses (I) (F 12.01.a)
Row
- 0020Debt securities
Column
- 0100Closing balance
A worked example
The first of its checks, with simple numbers.
Debt securities, closing balance must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{F_12.01.a,r0020,c0100,} = {F_04.03.1,r0050,c0050,} + {F_04.04.1,r0010,c0050,}Other rules on F 04.03.1
- A balancing check across movements in allowances and provisions for credit losses, and breakdown of financial assets (F 12.01.a, F 04.04.1, row 0010, v6030_m)Warning
- Allowances for financial assets without increase in credit risk since initial recognition (Stage 1): loans and advances, closing balance must equal the sum of its two parts (v6032_m)Warning
- A balancing check across movements in allowances and provisions for credit losses, and breakdown of financial assets (F 12.01.a, F 04.04.1, row 0180, v6033_m)Warning
- Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2): debt securities, closing balance must equal the sum of its two parts (v6034_m)Warning
- Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2): loans and advances, closing balance must equal the sum of its two parts (v6035_m)Warning
- Allowances for credit-impaired debt instruments (Stage 3), closing balance minus cash balances at central banks and other demand deposits, closing balance must equal the sum of two cells (v6036_m)Warning
- Allowances for credit-impaired debt instruments (Stage 3): debt securities, closing balance must equal the sum of its two parts (v6037_m)Warning
- Allowances for credit-impaired debt instruments (Stage 3): loans and advances, closing balance must equal the sum of its two parts (v6038_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.