The rule in plain words
Lease liabilities cannot be more than other financial liabilities.
EBA checks it for two columns: amortised cost and at a cost-based method. That makes two 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.
Amortised cost: of which: lease liabilities <= Other financial liabilities
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 08.01 as reported.
- 05This 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
Breakdown of financial liabilities by product and by counterparty (a) (F 08.01.a)
Rows
- 0440Other financial liabilities
- 0445of which: lease liabilities
Columns
- 0030Amortised cost
- 0035At a cost-based method
A worked example
The first of its checks, with simple numbers.
Other financial liabilities must then be at least 1,200.
A file that reports 1,200 passes. One that reports 1,100 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_08.01.a,r0445,c0030,} <= {F_08.01.a,r0440,c0030,}The next one:
{F_08.01.a,r0445,c0035,} <= {F_08.01.a,r0440,c0035,}Other rules on F 08.01.a
- None of the 82 values it checks in breakdown of financial liabilities can be negative (v8372_s)Warning
- Derivatives, hedge accounting cannot be negative (v6139_s)Blocking
- None of the 88 values it checks in breakdown of financial liabilities can be negative (v3924_s)Warning
- Designated at fair value through profit or loss cannot be negative (v3922_s)Warning
- Debt securities issued must equal the sum of its five parts (v2277_m)Warning
- Other debt securities issued must equal the sum of its two parts (v1948_m)Warning
- Households must equal the sum of its four parts (v1947_m)Blocking
- Non-financial corporations must equal the sum of its four parts (v1946_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.