The rule in plain words
Collateral received on performing exposures plus financial guarantees received on performing exposures cannot be more than performing.
EBA checks it for 16 rows, from debt securities (0211) to credit for consumption (0933). That makes 16 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.
F_18.00.D: Central banks, Collateral received on performing exposures + F_18.00.C: Central banks, Financial guarantees received on performing exposures <= F_18.00.A: Central banks, Performing
What to do if your filing fails it
- 01Open the templates 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 18.00 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
Information on performing and non-performing exposures (I) (F 18.00.a)
Rows
- 0211Debt securities
- 0212Central banks
- 0213General governments
- 0214Credit institutions
- 0215Other financial corporations
- 0216Non-financial corporations
- 0221Loans and advances
- 0222Central banks
- 0223General governments
- 0224Credit institutions
- 0225Other financial corporations
- 0226Non-financial corporations
- 0227Households
- 0231DEBT INSTRUMENTS AT STRICT LOCOM, OR FAIR VALUE THROUGH PROFIT OR LOSS OR THROUGH EQUITY NOT SUBJECT TO IMPAIRMENT
- 0920Of which: Small and Medium-sized Enterprises
- 0933Of which: Credit for consumption
Column
- 0020Performing
Information on performing and non-performing exposures (III) (F 18.00.c)
Rows
- 0211Debt securities
- 0212Central banks
- 0213General governments
- 0214Credit institutions
- 0215Other financial corporations
- 0216Non-financial corporations
- 0221Loans and advances
- 0222Central banks
- 0223General governments
- 0224Credit institutions
- 0225Other financial corporations
- 0226Non-financial corporations
- 0227Households
- 0231DEBT INSTRUMENTS AT STRICT LOCOM, OR FAIR VALUE THROUGH PROFIT OR LOSS OR THROUGH EQUITY NOT SUBJECT TO IMPAIRMENT
- 0920Of which: Small and Medium-sized Enterprises
- 0933Of which: Credit for consumption
Column
- 0205Financial guarantees received on performing exposures
Information on performing and non-performing exposures (IV) (F 18.00.d)
Rows
- 0211Debt securities
- 0212Central banks
- 0213General governments
- 0214Credit institutions
- 0215Other financial corporations
- 0216Non-financial corporations
- 0221Loans and advances
- 0222Central banks
- 0223General governments
- 0224Credit institutions
- 0225Other financial corporations
- 0226Non-financial corporations
- 0227Households
- 0231DEBT INSTRUMENTS AT STRICT LOCOM, OR FAIR VALUE THROUGH PROFIT OR LOSS OR THROUGH EQUITY NOT SUBJECT TO IMPAIRMENT
- 0920Of which: Small and Medium-sized Enterprises
- 0933Of which: Credit for consumption
Column
- 0201Collateral received on performing exposures
A worked example
The first of its checks, with simple numbers.
Central banks, performing 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}.
{F_18.00.d,r0212,c0201,} + {F_18.00.c,r0212,c0205,} <= {F_18.00.a,r0212,c0020,}The next five:
{F_18.00.d,r0225,c0201,} + {F_18.00.c,r0225,c0205,} <= {F_18.00.a,r0225,c0020,}{F_18.00.d,r0920,c0201,} + {F_18.00.c,r0920,c0205,} <= {F_18.00.a,r0920,c0020,}{F_18.00.d,r0221,c0201,} + {F_18.00.c,r0221,c0205,} <= {F_18.00.a,r0221,c0020,}{F_18.00.d,r0214,c0201,} + {F_18.00.c,r0214,c0205,} <= {F_18.00.a,r0214,c0020,}{F_18.00.d,r0215,c0201,} + {F_18.00.c,r0215,c0205,} <= {F_18.00.a,r0215,c0020,}And 10 more, the same formula for the other cells it covers.
Other rules on F 18.00.a
- Collateral received on performing exposures plus financial guarantees received on performing exposures cannot be more than performing plus performing exposures, accumulated impairment and provisions (v7820_m)Warning
- A lower-limit check across information on performing and non-performing exposures, and inflows and outflows of non-performing exposures (F 18.01, v7822_m)Warning
- Loans collateralised by commercial immovable property in F 18.02.a must equal the sum of its three parts (v7823_m)Warning
- Loans collateralised by residential immovable property in F 18.02.a must equal the sum of its three parts (v7824_m)Warning
- The sum of three rows must equal loans and advances, defaulted gross carrying amount (all sheets added up) (v7825_m)Warning
- The sum of three rows must equal debt securities, defaulted gross carrying amount (all sheets added up) (v7826_m)Warning
- Debt securities: the sum of three rows must equal central banks, defaulted gross carrying amount (all sheets added up) (v7827_m)Warning
- Debt securities: the sum of three rows must equal general governments, defaulted gross carrying amount (all sheets added up) (v7828_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.