Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Decreases during the period cannot be less than reversal of impairment and negative changes in fair value due to credit risk (EBA rule v8062_m)

A warning in the financial reporting return (FINREP 9), on template F 24.02, loans and advances: flow of impairments and accumulated negative changes in fair value due to credit risk on non-performing exposures.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Decreases during the period cannot be less than reversal of impairment and negative changes in fair value due to credit risk.

EBA checks it for seven columns: non-performing exposures - loans and advances, households, loans collateralised by residential immovable property, non-financial corporations, SMEs, commercial Real Estate (CRE) loans to SMEs, and commercial Real Estate (CRE) loans to NFCs other than SMEs. That makes seven checks. A failure names the one that failed.

How the Line4 Check report words itShow

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: Households: Decreases during the period >= Of which: Reversal of impairment and negative changes in fair value due to credit risk

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 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.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark F 24.02 as reported.
  5. 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: flow of impairments and accumulated negative changes in fair value due to credit risk on non-performing exposures (F 24.02)

Rows

  • 0040Decreases during the period
  • 0050Of which: Reversal of impairment and negative changes in fair value due to credit risk

Columns

  • 0010Non-performing exposures - loans and advances
  • 0020of which: Households
  • 0030of which: Loans collateralised by residential immovable property
  • 0040of which: Non-financial corporations
  • 0050of which: SMEs
  • 0060of which: Commercial Real Estate (CRE) loans to SMEs
  • 0070of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs

A worked example

The first of its checks, with simple numbers.

Illustrative values
Decreases during the period1,200
What the rule then expects

Reversal of impairment and negative changes in fair value due to credit risk can then be at most 1,200.

1,200Passes
1,300Fails

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 writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_24.02,r0040,c0020,} >= {F_24.02,r0050,c0020,}

The next five:

{F_24.02,r0040,c0050,} >= {F_24.02,r0050,c0050,}{F_24.02,r0040,c0070,} >= {F_24.02,r0050,c0070,}{F_24.02,r0040,c0060,} >= {F_24.02,r0050,c0060,}{F_24.02,r0040,c0010,} >= {F_24.02,r0050,c0010,}{F_24.02,r0040,c0030,} >= {F_24.02,r0050,c0030,}

And 1 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.