The rule in plain words
Households cannot be more than loans collateralised by residential immovable property.
EBA checks it for two rows: write-offs during the period and debt forgiveness. That makes two 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: Debt forgiveness, of which: Households <= Of which: Debt forgiveness, of which: Loans collateralised by residential immovable property
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 24.03 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
Loans and advances: write-offs of non-performing exposures during the period (F 24.03)
Rows
- 0010Write-offs during the period
- 0020Of which: Debt forgiveness
Columns
- 0020of which: Households
- 0030of which: Loans collateralised by residential immovable property
A worked example
The first of its checks, with simple numbers.
Loans collateralised by residential immovable property 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_24.03,r0020,c0020,} <= {F_24.03,r0020,c0030,}The next one:
{F_24.03,r0010,c0020,} <= {F_24.03,r0010,c0030,}Other rules on F 24.03
- Non-performing exposures, loans and advances cannot be more than the sum of two columns (v8065_m)Warning
- Non-financial corporations minus SMEs cannot be more than commercial Real Estate (CRE) loans to NFCs other than SMEs (v8067_m)Warning
- SMEs cannot be more than commercial Real Estate (CRE) loans to SMEs (v8068_m)Warning
- Write-offs during the period cannot be more than debt forgiveness (v8069_m)Warning
- Each of the 14 values it checks in loans and advances cannot be more than zero (v8350_s)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of SMEs (v23575_h)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.