The rule in plain words
Closing balance must equal these three added up:
- Opening balance
- Inflows of collateral during the period
- Outflows of collateral during the period
EBA checks it for two columns: carrying amount (0040) and carrying amount (0120). 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.
Carrying amount: Closing balance = Opening balance + Inflows of collateral during the period + Outflows of collateral during the period
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 25.01 as reported.
- 06This 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
- 0010Opening balance
- 0020Inflows of collateral during the period
- 0050Outflows of collateral during the period
- 0120Closing balance
Columns
- 0040Carrying amount
- 0120Carrying amount
A worked example
The first of its checks, with simple numbers.
Closing balance must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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_25.01.a,r0120,c0040,} = {F_25.01.a,r0010,c0040,} + {F_25.01.a,r0020,c0040,} + {F_25.01.a,r0050,c0040,}The next one:
{F_25.01.a,r0120,c0120,} = {F_25.01.a,r0010,c0120,} + {F_25.01.a,r0020,c0120,} + {F_25.01.a,r0050,c0120,}Other rules on F 25.01.a
- Outflows of collateral during the period must equal the sum of its three parts (v8074_m)Warning
- Inflows of collateral during the period must equal the sum of its two parts (v8073_m)Warning
- Carrying amount, collateral obtained by taking possession other than collateral classified as property Plant and equipment (PP&E) must equal the sum of its three parts (v8072_m)Warning
- Carrying amount: collateral obtained by taking possession other than collateral classified as property Plant and equipment (PP&E) must equal <= 2 years (v8071_m)Warning
- The absolute value of outflow for which cash was collected must equal cash collected net of costs minus profits/ losses from sale of collateral obtained by taking possession (v8070_m)Warning
- None of the ten values it checks in collateral obtained can be negative (v10008_s)Warning
- None of the four values it checks in collateral obtained can be negative (v10009_s)Warning
- None of the eight values it checks in collateral obtained can be negative (v10010_s)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.