The rule in plain words
For gross carrying amount: financial assets at amortised cost, credit-impaired assets (Stage 3) must equal debt securities, credit-impaired instruments (Stage 3) plus loans and advances, credit-impaired instruments (Stage 3).
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.A: Debt securities, Of which: Credit-impaired instruments (Stage 3) + F_18.00.A: Loans and advances, Of which: Credit-impaired instruments (Stage 3) = F_04.04.1: FINANCIAL ASSETS AT AMORTISED COST, Credit-impaired assets (Stage 3)
What to do if your filing fails it
- 01Open the templates 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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 18.00 and F 04.04.1 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
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Row
- 0140FINANCIAL ASSETS AT AMORTISED COST
Column
- 0040Credit-impaired assets (Stage 3)
Information on performing and non-performing exposures (I) (F 18.00.a)
Rows
- 0010Debt securities
- 0070Loans and advances
Column
- 0121Of which: Credit-impaired instruments (Stage 3)
A worked example
The first of its checks, with simple numbers.
Financial assets at amortised cost, credit-impaired assets (Stage 3) must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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. Cells are written as {template, row, column, sheet}.
sum({F_18.00.a,r0010,c0121,},{F_18.00.a,r0070,c0121,}) = {F_04.04.1,r0140,c0040,}Other rules on F 04.04.1
- Small and medium-sized Enterprises, gross carrying amount or nominal amount must equal the sum of its four parts (row 0130, v8140_m)Warning
- Debt instruments at cost or at amortised cost: a balancing check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.b, v8142_m)Warning
- Each of the 75 values it checks in breakdown of financial assets cannot be more than zero (v8155_s)Warning
- Accumulated impairment: financial assets at amortised cost, credit-impaired assets (Stage 3) must equal the sum of its two parts (v7844_m)Warning
- Accumulated impairment: financial assets at amortised cost, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) must equal the sum of its four parts (v7843_m)Warning
- Small and medium-sized Enterprises, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0130, v7842_m)Warning
- Loans and advances, gross carrying amount or nominal amount plus debt securities, gross carrying amount or nominal amount must equal the sum of four columns (v7815_m)Warning
- Gross carrying amount: financial assets at amortised cost, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) must equal the sum of its four parts (v7814_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.