The rule in plain words

For carrying amount: collateral obtained by taking possession other than collateral classified as property Plant and equipment (PP&E) must equal these three added up:

<= 2 years
> 2 years <= 5 years
> 5 years

EBA checks it for eleven rows, from residential immovable property (0010) to total (0110). That makes eleven 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.

Movable property, Collateral obtained by taking possession other than collateral classified as Property Plant and Equipment (PP&E), carrying amount = Movable property, <= 2 years, carrying amount + Movable property, > 2 years <= 5 years, carrying amount + Movable property, > 5 years, carrying amount

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03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 25.02 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

Collateral obtained by taking possession other than collateral classified as property Plant and equipment (PP&E): type of collateral obtained (I) (F 25.02.a)

Rows

0010Residential immovable property
0020Of which: under construction / development
0030Commercial immovable property
0040Of which: under construction / development
0050Of which: Land related to commercial real estate corporations (excluding agricultural land)
0060Of which: Land with planning permission for development
0070Of which: Land without planning permission for development
0080Movable property
0090Equity and debt securities
0100Other
0110Total

Columns

0040Carrying amount
0070Carrying amount
0100Carrying amount
0130Carrying amount

A worked example

The first of its checks, with simple numbers.

Illustrative values

Carrying amount, <= 2 years1,200

Carrying amount, > 2 years <= 5 years800

Carrying amount, > 5 years450

Together2,450

What the rule then expects

Carrying amount, collateral obtained by taking possession other than collateral classified as property Plant and equipment (PP&E) must then be 2,450.

2,450Passes

2,550Fails

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 writtenShow

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

{F_25.02.a,r0080,c0040,} = {F_25.02.a,r0080,c0070,} + {F_25.02.a,r0080,c0100,} + {F_25.02.a,r0080,c0130,}

The next five:

{F_25.02.a,r0030,c0040,} = {F_25.02.a,r0030,c0070,} + {F_25.02.a,r0030,c0100,} + {F_25.02.a,r0030,c0130,}{F_25.02.a,r0090,c0040,} = {F_25.02.a,r0090,c0070,} + {F_25.02.a,r0090,c0100,} + {F_25.02.a,r0090,c0130,}{F_25.02.a,r0110,c0040,} = {F_25.02.a,r0110,c0070,} + {F_25.02.a,r0110,c0100,} + {F_25.02.a,r0110,c0130,}{F_25.02.a,r0020,c0040,} = {F_25.02.a,r0020,c0070,} + {F_25.02.a,r0020,c0100,} + {F_25.02.a,r0020,c0130,}{F_25.02.a,r0050,c0040,} = {F_25.02.a,r0050,c0070,} + {F_25.02.a,r0050,c0100,} + {F_25.02.a,r0050,c0130,}

And 5 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.

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 (F 25.02.a, EBA rule v8079_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on F 25.02.a