The rule in plain words
SMEs cannot be less than commercial Real Estate (CRE) loans to SMEs.
EBA checks it for twelve rows, from opening balance (0010) to closing balance (0320). That makes twelve 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.
Of which: Inflow of exposures granted in the past 24 months, of which: SMEs >= Of which: Inflow of exposures granted in the past 24 months, of which: Commercial Real Estate (CRE) loans to SMEs
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 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 24.01 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
Loans and advances: inflows and outflows of non-performing exposures (F 24.01)
Rows
- 0010Opening balance
- 0020Inflows
- 0030Inflow due to reclassification from performing not forborne
- 0040Inflow due to reclassification from performing forborne
- 0050of which: reclassified from performing forborne exposures under probation previously reclassified from non-performing
- 0060Inflow due to purchase of exposures
- 0070Inflow due to accrued interest
- 0080Inflow due to other reasons
- 0090Of which: Inflow more than once
- 0100Of which: Inflow of exposures granted in the past 24 months
- 0110Of which: Inflow of exposures granted during the period
- 0320Closing balance
Columns
- 0050of which: SMEs
- 0060of which: Commercial Real Estate (CRE) loans to SMEs
A worked example
The first of its checks, with simple numbers.
Commercial Real Estate (CRE) loans to SMEs can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 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_24.01,r0100,c0050,} >= {F_24.01,r0100,c0060,}The next five:
{F_24.01,r0040,c0050,} >= {F_24.01,r0040,c0060,}{F_24.01,r0080,c0050,} >= {F_24.01,r0080,c0060,}{F_24.01,r0090,c0050,} >= {F_24.01,r0090,c0060,}{F_24.01,r0050,c0050,} >= {F_24.01,r0050,c0060,}{F_24.01,r0070,c0050,} >= {F_24.01,r0070,c0060,}And 6 more, the same formula for the other cells it covers.
Other rules on F 24.01
- Non-financial corporations minus SMEs cannot be less than commercial Real Estate (CRE) loans to NFCs other than SMEs (v8038_m)Warning
- Inflows must equal the sum of its five parts (v8040_m)Warning
- Households cannot be less than loans collateralised by residential immovable property (v8037_m)Warning
- Inflows cannot be less than inflow more than once (v8041_m)Warning
- Non-performing exposures, loans and advances cannot be less than the sum of two columns (v8036_m)Warning
- Inflows cannot be less than inflow of exposures granted in the past 24 months (v8042_m)Warning
- Inflow due to reclassification from performing forborne cannot be less than inflows reclassified from performing forborne exposures under probation previously reclassified from non-performing (v8043_m)Warning
- Inflow of exposures granted in the past 24 months cannot be less than inflow of exposures granted during the period (v8044_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.