The rule in plain words
Commercial Real Estate loans to non-financial corporations (NFCs) other than SMEs) collateralised by immovable property cannot be more than commercial real estate (CRE) loans to non-financial corporations other than SMEs.
All the values are in the gross carrying amount column (0010).
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_23.03: Commercial Real Estate loans to non-financial corporations (NFCs) other than SMEs) collateralised by immovable property, Gross carrying amount <= F_18.02.A: Commercial real estate (CRE) loans to non-financial corporations other than SMEs, Gross carrying amount
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 and F 23.03 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)
Row
- 0020Commercial real estate (CRE) loans to non-financial corporations other than SMEs
Column
- 0010Gross carrying amount
Loans and advances collateralised by immovable property: Breakdown by LTV ratios (F 23.03)
Row
- 0170Commercial Real Estate loans to non-financial corporations (NFCs) other than SMEs) collateralised by immovable property
Column
- 0010Gross carrying amount
A worked example
The first of its checks, with simple numbers.
Commercial real estate (CRE) loans to non-financial corporations other than SMEs 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. Cells are written as {template, row, column, sheet}.
{F_23.03,r0170,c0010,} <= {F_18.02.a,r0020,c0010,}Other rules on F 18.02.a
- Gross carrying amount: commercial Real Estate loans to small and medium-sized enterprises (NFCs) collateralised by immovable property cannot be more than commercial real estate (CRE) loans to small and medium-sized enterprises (v7965_m)Warning
- Gross carrying amount: an upper-limit check across loans and advances collateralised, and commercial Real Estate (CRE) loans and additional information on loans secured (F 23.03, v7967_m)Warning
- Commercial Real Estate loans to small and medium-sized enterprises (NFCs) collateralised by immovable property cannot be more than commercial real estate (CRE) loans to small and medium-sized enterprises (v7964_m)Warning
- Loans collateralised by commercial immovable property must equal the sum of its two parts (v7968_m)Warning
- Gross carrying amount: loans collateralised by commercial immovable property must equal the sum of its two parts (v7969_m)Warning
- Loans collateralised by residential immovable property cannot be less than the sum of three rows (v7886_m)Warning
- Loans collateralised by residential immovable property cannot be more than the sum of three rows (v7885_m)Warning
- Loans collateralised by commercial immovable property cannot be less than the sum of three rows (v7884_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.