The rule in plain words
Non-performing exposures - loans and advances cannot be less than households plus non-financial corporations.
EBA checks it for three rows: decreases during the period, reversal of impairment and negative changes in fair value due to credit risk, and release of allowances due to unwinding process. 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.
Of which: Release of allowances due to unwinding process, Non-performing exposures - loans and advances >= Of which: Release of allowances due to unwinding process, of which: Households + Of which: Release of allowances due to unwinding process, of which: Non-financial corporations
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 24.02 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
Rows
- 0040Decreases during the period
- 0050Of which: Reversal of impairment and negative changes in fair value due to credit risk
- 0060Of which: Release of allowances due to unwinding process
Columns
- 0010Non-performing exposures - loans and advances
- 0020of which: Households
- 0040of which: Non-financial corporations
A worked example
The first of its checks, with simple numbers.
Non-performing exposures - loans and advances must then be at least 2,000.
A file that reports 2,000 passes. One that reports 1,900 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_24.02,r0060,c0010,} >= {F_24.02,r0060,c0020,} + {F_24.02,r0060,c0040,}The next two:
{F_24.02,r0050,c0010,} >= {F_24.02,r0050,c0020,} + {F_24.02,r0050,c0040,}{F_24.02,r0040,c0010,} >= {F_24.02,r0040,c0020,} + {F_24.02,r0040,c0040,}Other rules on F 24.02
- Non-performing exposures, loans and advances cannot be more than the sum of two columns (v8053_m)Warning
- Households cannot be more than loans collateralised by residential immovable property (v8055_m)Warning
- Households cannot be less than loans collateralised by residential immovable property (v8056_m)Warning
- Non-financial corporations minus SMEs cannot be more than commercial Real Estate (CRE) loans to NFCs other than SMEs (v8057_m)Warning
- Non-financial corporations minus SMEs cannot be less than commercial Real Estate (CRE) loans to NFCs other than SMEs (v8058_m)Warning
- SMEs cannot be more than commercial Real Estate (CRE) loans to SMEs (v8059_m)Warning
- SMEs cannot be less than commercial Real Estate (CRE) loans to SMEs (v8060_m)Warning
- Increases during the period cannot be more than impairments against interest accrued (v8061_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.