The rule in plain words
Defaulted nominal amount cannot be more than non-performing nominal amount.
EBA checks it for three rows: loan commitments given, financial guarantees given and other commitments given. That makes three 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.
Financial guarantees given, Of which: defaulted <= Financial guarantees given, Of which: non-performing
What to do if your filing fails it
- 01Open the template 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 20.05 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
Geographical breakdown of off-balance sheet exposures by residence of the counterparty (a) (F 20.05.a)
Rows
- 0010Loan commitments given
- 0020Financial guarantees given
- 0030Other commitments given
Columns
- 0025Of which: non-performing
- 0026Of which: defaulted
A worked example
The first of its checks, with simple numbers.
Non-performing nominal amount must then be at least 1,200.
A file that reports 1,200 passes. One that reports 1,100 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_20.05.a,r0020,c0026,} <= {F_20.05.a,r0020,c0025,}The next two:
{F_20.05.a,r0010,c0026,} <= {F_20.05.a,r0010,c0025,}{F_20.05.a,r0030,c0026,} <= {F_20.05.a,r0030,c0025,}Other rules on F 20.05.a
- Loan commitments given, forborne nominal amount cannot be negative (v4361_s)Warning
- None of the nine values it checks in geographical breakdown of off-balance sheet exposures can be negative (v3965_s)Warning
- Financial guarantees given: nominal amount cannot be less than provisions for commitments and guarantees given (v12015_m)Not run yet
- Other commitments given: nominal amount cannot be less than provisions for commitments and guarantees given (v12016_m)Not run yet
- Non-performing nominal amount cannot be more than nominal amount (v3139_m)Warning
- Forborne nominal amount cannot be more than nominal amount (v3138_m)Warning
- Loan commitments given: nominal amount cannot be less than provisions for commitments and guarantees given (v0992_m)Not run yet
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.