The rule in plain words
Total inflows / outflows must equal loans and advances other than held for trading or trading plus loans and advances held for sale.
EBA checks it for two columns, all for non-performing exposures: inflows to and (-) outflows from. 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.
(-) Outflows from non-performing exposures: TOTAL INFLOWS / OUTFLOWS = LOANS AND ADVANCES OTHER THAN HELD FOR TRADING OR TRADING + LOANS AND ADVANCES HELD FOR SALE
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 18.01 as reported.
- 06This 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
Inflows and outflows of non-performing exposures - loans and advances by counterparty sector (F 18.01)
Rows
- 0130LOANS AND ADVANCES OTHER THAN HELD FOR TRADING OR TRADING
- 0140LOANS AND ADVANCES HELD FOR SALE
- 0150TOTAL INFLOWS / OUTFLOWS
Columns
- 0010Inflows to non-performing exposures
- 0020(-) Outflows from non-performing exposures
A worked example
The first of its checks, with simple numbers.
Total inflows / outflows must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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_18.01,r0150,c0020,} = {F_18.01,r0130,c0020,} + {F_18.01,r0140,c0020,}The next one:
{F_18.01,r0150,c0010,} = {F_18.01,r0130,c0010,} + {F_18.01,r0140,c0010,}Other rules on F 18.01
- Loans and advances other than held for trading or trading must equal the sum of its six parts (v7870_m)Warning
- Households cannot be less than credit for consumption (v7869_m)Warning
- Households cannot be less than loans collateralised by residential immovable property (v7868_m)Warning
- Non-financial corporations cannot be less than loans collateralised by commercial immovable property (v7867_m)Warning
- Non-financial corporations cannot be less than the sum of two rows (v7866_m)Warning
- Non-financial corporations cannot be less than small and medium-sized Enterprises (v8114_m)Warning
- Small and medium-sized Enterprises cannot be less than commercial real estate (CRE) loans to small and medium-sized enterprises (v8115_m)Warning
- Non-financial corporations cannot be more than small and medium-sized Enterprises (v8116_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.