The rule in plain words
These three added up, all for loans and advances cannot be less than loans and advances other than held for trading or trading, inflows to non-performing exposures plus loans and advances other than held for trading or trading, (-) outflows from non-performing exposures:
- Non-performing (under debt instruments at fair value through other comprehensive income or through equity subject to impairment)
- Non-performing (under debt instruments at cost or at amortised cost)
- Non-performing (under debt instruments at strict LOCOM, or fair value through profit or loss or through equity not subject to impairment)
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.A: DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME OR THROUGH EQUITY SUBJECT TO IMPAIRMENT, loans and advances, Non-performing + F_18.00.A: DEBT INSTRUMENTS AT COST OR AT AMORTISED COST, loans and advances, Non-performing + F_18.00.A: DEBT INSTRUMENTS AT STRICT LOCOM, OR FAIR VALUE THROUGH PROFIT OR LOSS OR THROUGH EQUITY NOT SUBJECT TO IMPAIRMENT, loans and advances, Non-performing >= F_18.01: LOANS AND ADVANCES OTHER THAN HELD FOR TRADING OR TRADING, Inflows to non-performing exposures + F_18.01: LOANS AND ADVANCES OTHER THAN HELD FOR TRADING OR TRADING, (-) Outflows from non-performing exposures
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 smaller 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 and F 18.01 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
Information on performing and non-performing exposures (I) (F 18.00.a)
Rows
- 0070Loans and advances
- 0191Loans and advances
- 0221Loans and advances
Column
- 0060Non-performing
Inflows and outflows of non-performing exposures - loans and advances by counterparty sector (F 18.01)
Row
- 0130LOANS AND ADVANCES OTHER THAN HELD FOR TRADING OR TRADING
Columns
- 0010Inflows to non-performing exposures
- 0020(-) Outflows from non-performing exposures
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
sum({F_18.00.a,r0191,c0060,},{F_18.00.a,r0070,c0060,},{F_18.00.a,r0221,c0060,}) >= {F_18.01,r0130,c0010,} + {F_18.01,r0130,c0020,}Other rules on F 18.00.a
- The sum of two cells cannot be more than performing (v7821_m)Warning
- Loans collateralised by commercial immovable property in F 18.02.a must equal the sum of its three parts (v7823_m)Warning
- 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
- 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.