The rule in plain words
Debt instruments at fair value through other comprehensive income or through equity subject to impairment, credit-impaired instruments (Stage 3) must equal financial assets at fair value through other comprehensive income, credit-impaired assets (Stage 3).
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.B: DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME OR THROUGH EQUITY SUBJECT TO IMPAIRMENT, Of which: Credit-impaired instruments (Stage 3) = F_04.03.1: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, Credit-impaired assets (Stage 3)
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 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 18.00 and F 04.03.1 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
Row
- 0180FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Column
- 0070Credit-impaired assets (Stage 3)
Information on performing and non-performing exposures (II) (F 18.00.b)
Row
- 0201DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME OR THROUGH EQUITY SUBJECT TO IMPAIRMENT
Column
- 0951Of which: Credit-impaired instruments (Stage 3)
A worked example
The first of its checks, with simple numbers.
Financial assets at fair value through other comprehensive income, credit-impaired assets (Stage 3) must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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_18.00.b,r0201,c0951,} = {F_04.03.1,r0180,c0070,}Other rules on F 04.03.1
- Accumulated impairment: financial assets at fair value through other comprehensive income, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) must equal the sum of its two parts (v7812_m)Warning
- Gross carrying amount: financial assets at fair value through other comprehensive income, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) must equal the sum of its two parts (v7811_m)Warning
- Small and medium-sized Enterprises, gross carrying amount or nominal amount must equal the sum of its four parts (row 0900, v7810_m)Warning
- Small and medium-sized Enterprises, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0900, v7841_m)Warning
- Loans and advances, accumulated partial write-offs in F 23.06 must equal the sum of its two parts (v8023_m)Warning
- A matching-values check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.a, v8143_m)Warning
- Each of the 75 values it checks in breakdown of financial assets cannot be more than zero (v8370_s)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.