The rule in plain words
Commitments and financial guarantees given (Stage 2), closing balance must equal these three added up:
- Loan commitments given, instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
- Financial guarantees given, instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
- Other commitments given, instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_12.01.B: Commitments and financial guarantees given (Stage 2), Closing balance = F_09.01.1: Loan commitments given, Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2) + F_09.01.1: Financial guarantees given, Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2) + F_09.01.1: Other Commitments given, Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 09.01.1 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
Off-balance sheet exposures : loan commitments, financial guarantees and other commitments given (F 09.01.1)
Rows
- 0010Loan commitments given
- 0090Financial guarantees given
- 0170Other Commitments given
Column
- 0050Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
Movements in allowances and provisions for credit losses (II) (F 12.01.b)
Row
- 0540Commitments and financial guarantees given (Stage 2)
Column
- 0100Closing balance
A worked example
The first of its checks, with simple numbers.
Commitments and financial guarantees given (Stage 2), closing balance must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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.b,r0540,c0100,} = sum({F_09.01.1,r0010,c0050,},{F_09.01.1,r0090,c0050,},{F_09.01.1,r0170,c0050,})Other rules on F 09.01.1
- Commitments and financial guarantees given (Stage 1), closing balance must equal the sum of its three parts (v6047_m)Warning
- Commitments and financial guarantees given (Stage 3), closing balance must equal the sum of its three parts (v6049_m)Warning
- Accumulated negatives change in fair value due to credit risk on non-performing commitments cannot be negative (v5681_s)Warning
- Nominal amount cannot be negative (v5680_s)Warning
- None of the 216 values it checks in off-balance sheet exposures can be negative (v5679_s)Warning
- Other commitments given cannot be less than non-performing other commitments given (v5365_m)Warning
- Financial guarantees given cannot be less than non-performing financial guarantees given (v5364_m)Warning
- Loan commitments given cannot be less than non-performing loan commitments given (v5363_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.