The rule in plain words
None of the values it checks in collateral obtained can be negative.
EBA checks it for two columns: value at initial recognition and carrying amount. And for eight rows: property, Plant and equipment, other than property Plant and equipment, residential immovable property, commercial immovable property, movable property, equity and debt securities, other, and total. That makes 16 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.
Value at initial recognition: Property, Plant and Equipment >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 13.02.1 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
Collateral obtained by taking possession during the period (held at the reference date) (I) (F 13.02.1.a)
Rows
- 0010Property, Plant and Equipment
- 0020Other than Property Plant and Equipment
- 0030Residential immovable property
- 0040Commercial immovable property
- 0050Movable property
- 0060Equity and debt securities
- 0070Other
- 0080Total
Columns
- 0010Value at initial recognition
- 0020Carrying amount
A worked example
The first of its checks, with simple numbers.
Property, Plant and equipment, value at initial recognition must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
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_13.02.1.a,r0010,c0010,} >= 0The next five:
{F_13.02.1.a,r0080,c0020,} >= 0{F_13.02.1.a,r0020,c0010,} >= 0{F_13.02.1.a,r0070,c0010,} >= 0{F_13.02.1.a,r0030,c0020,} >= 0{F_13.02.1.a,r0070,c0020,} >= 0And 10 more, the same formula for the other cells it covers.
Other rules on F 13.02.1.a
- Total must equal the sum of its two parts (v7796_m)Warning
- Other than property Plant and equipment must equal the sum of its five parts (v7795_m)Warning
- Accumulated negative changes cannot be more than zero (v7794_s)Warning
- Carrying amount in F 13.02.1.a cannot be more than carrying amount in F 13.03.1.a (v7793_m)Warning
- Carrying amount in F 13.02.1.b cannot be more than carrying amount in F 13.02.1.a (v7792_m)Warning
- Value at initial recognition in F 13.02.1.b cannot be more than value at initial recognition in F 13.02.1.a (v7791_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.