The rule in plain words
Commercial Real Estate (CRE) loans to small and medium-sized enterprises plus commercial Real Estate (CRE) loans to non-financial corporations other than SMEs cannot be more than non-financial corporations.
EBA checks it for seven columns: residential immovable property, commercial immovable property, cash, deposits, [debt securities issued], movable property, equity and debt securities, rest, and financial guarantees received. That makes seven 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.
Residential immovable property: Of which: Commercial Real Estate (CRE) loans to small and medium-sized enterprises + Of which: Commercial Real Estate (CRE) loans to non-financial corporations other than SMEs <= Of which: Non-financial corporations
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 13.01 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 collateral and guarantees by loans and advances other than held for trading (F 13.01)
Rows
- 0030Of which: Non-financial corporations
- 0036Of which: Commercial Real Estate (CRE) loans to small and medium-sized enterprises
- 0037Of which: Commercial Real Estate (CRE) loans to non-financial corporations other than SMEs
Columns
- 0010Residential immovable property
- 0020Commercial immovable property
- 0030Cash, deposits, [debt securities issued]
- 0031Movable property
- 0032Equity and debt securities
- 0041Rest
- 0050Financial guarantees received
A worked example
The first of its checks, with simple numbers.
Non-financial corporations must then be at least 2,000.
A file that reports 2,000 passes. One that reports 1,900 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}.
sum({F_13.01,r0036,c0010,},{F_13.01,r0037,c0010,}) <= {F_13.01,r0030,c0010,}The next five:
sum({F_13.01,r0036,c0020,},{F_13.01,r0037,c0020,}) <= {F_13.01,r0030,c0020,}sum({F_13.01,r0036,c0030,},{F_13.01,r0037,c0030,}) <= {F_13.01,r0030,c0030,}sum({F_13.01,r0036,c0031,},{F_13.01,r0037,c0031,}) <= {F_13.01,r0030,c0031,}sum({F_13.01,r0036,c0032,},{F_13.01,r0037,c0032,}) <= {F_13.01,r0030,c0032,}sum({F_13.01,r0036,c0041,},{F_13.01,r0037,c0041,}) <= {F_13.01,r0030,c0041,}And 1 more, the same formula for the other cells it covers.
Other rules on F 13.01
- Small and medium-sized Enterprises (SMEs) cannot be more than non-financial corporations (v7787_m)Warning
- Lending for house purchase plus credit for consumption cannot be more than households (v7789_m)Warning
- Credit derivatives cannot be negative (v09599_s)Warning
- Financial guarantees received cannot be less than credit derivatives (v09600_m)Warning
- Loans and advances cannot be less than non-performing loans and advances (v09601_m)Warning
- Loans and advances cannot be less than households (v4961_m)Blocking
- Loans and advances cannot be less than non-financial corporations (v4960_m)Blocking
- Loans and advances cannot be less than other financial corporations (v4959_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.