The rule in plain words
For non-financial corporations: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, non-performing exposures - accumulated impairment, accumulated negative changes in fair value due to credit risk plus F 18.02.a, non Performing.
EBA checks it for two rows: commercial real estate (CRE) loans to small and medium-sized enterprises, and commercial real estate (CRE) loans to non-financial corporations other than SMEs. 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.
F_18.02.B: Commercial real estate (CRE) loans to non-financial corporations other than SMEs, Collateral received on non-performing exposures + F_18.02.C: Commercial real estate (CRE) loans to non-financial corporations other than SMEs, Financial guarantees received on non-performing exposures <= F_18.02.A: Commercial real estate (CRE) loans to non-financial corporations other than SMEs, Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk + F_18.02.A: Commercial real estate (CRE) loans to non-financial corporations other than SMEs, Non 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 18.02 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
Commercial Real Estate (CRE) loans and additional information on loans secured by immovable property (I) (F 18.02.a)
Rows
- 0010Commercial real estate (CRE) loans to small and medium-sized enterprises
- 0020Commercial real estate (CRE) loans to non-financial corporations other than SMEs
Columns
- 0080Non Performing
- 0220Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk
Commercial Real Estate (CRE) loans and additional information on loans secured by immovable property (II) (F 18.02.b)
Rows
- 0010Commercial real estate (CRE) loans to small and medium-sized enterprises
- 0020Commercial real estate (CRE) loans to non-financial corporations other than SMEs
Column
- 0320Collateral received on non-performing exposures
Commercial Real Estate (CRE) loans and additional information on loans secured by immovable property (III) (F 18.02.c)
Rows
- 0010Commercial real estate (CRE) loans to small and medium-sized enterprises
- 0020Commercial real estate (CRE) loans to non-financial corporations other than SMEs
Column
- 0340Financial guarantees received on non-performing exposures
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_18.02.b,r0020,c0320,} + {F_18.02.c,r0020,c0340,} <= sum({F_18.02.a,r0020,c0220,},{F_18.02.a,r0020,c0080,})The next one:
{F_18.02.b,r0010,c0320,} + {F_18.02.c,r0010,c0340,} <= sum({F_18.02.a,r0010,c0080,},{F_18.02.a,r0010,c0220,})Other rules on F 18.02.a
- Loans collateralised by residential immovable property: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, performing exposures, accumulated impairment plus F 18.02.a, performing (v7874_m)Warning
- Non-financial corporations: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, non-performing exposures, accumulated impairment, accumulated negative changes in fair value due to credit risk plus F 18.02.a, non Performing (row 0030, v7876_m)Warning
- Loans collateralised by commercial immovable property: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, performing exposures, accumulated impairment plus F 18.02.a, performing (v7873_m)Warning
- Loans collateralised by residential immovable property: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, non-performing exposures, accumulated impairment, accumulated negative changes in fair value due to credit risk plus F 18.02.a, non Performing (v7877_m)Warning
- Non-financial corporations: F 18.02.b plus F 18.02.c cannot be more than F 18.02.a, performing exposures, accumulated impairment plus F 18.02.a, performing (v7872_m)Warning
- Loans collateralised by commercial immovable property, exposures with forbearance measures must equal the sum of its three parts (v7878_m)Warning
- Loans collateralised by residential immovable property, exposures with forbearance measures must equal the sum of its three parts (v7879_m)Warning
- Performing must equal the sum of its two parts (v7880_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.