The rule in plain words
None of the values it checks in loans and advances can be negative.
EBA checks it for eight columns: gross carrying amount, exposures with forbearance measures (0020), non Performing, exposures with forbearance measures (0070), unlikely to pay that are not past due or past due <= 90 days, exposures with forbearance measures (0090), past due > 90 days, and exposures with forbearance measures (0110). And for 41 rows, from loans and advances (0010) to commercial Real Estate (CRE) loans to NFCs other than SMEs (0410). That makes 328 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.
Non Performing: of which: Non-financial corporations - SMEs >= 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 23.02 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: additional information on gross carrying amounts (F 23.02)
Rows
- 0010Loans and advances
- 0020of which: Households
- 0030of which: Loans collateralised by residential immovable property
- 0040of which: Non-financial corporations - SMEs
- 0050of which: Commercial Real Estate (CRE) loans to SMEs
- 0060of which: Non-financial corporations - other than SMEs
- 0070of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
- 0080Loans and advances at cost or at amortised cost
- 0090of which: Households
- 0100of which: Loans collateralised by residential immovable property
- 0110of which: Non-financial corporations - SMEs
- 0120of which: Commercial Real Estate (CRE) loans to SMEs
- 0130of which: Non-financial corporations - other than SMEs
- 0140of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
- 0150Loans and advances in pre-litigation status
- 0160of which: Households
- 0170of which: Loans collateralised by residential immovable property
- 0180of which: Non-financial corporations - SMEs
- 0190of which: Commercial Real Estate (CRE) loans to SMEs
- 0200of which: Non-financial corporations - other than SMEs
- 0210of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
- 0220Loans and advances in litigation status
- 0230of which: Households
- 0240of which: Loans collateralised by residential immovable property
- 0250of which: Non-financial corporations - SMEs
- 0260of which: Commercial Real Estate (CRE) loans to SMEs
- 0270of which: Non-financial corporations - other than SMEs
- 0280of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
- 0290Unsecured loans and advances without guarantees
- 0300of which: Households
- 0310of which: Non-financial corporations - SMEs
- 0320of which: Commercial Real Estate (CRE) loans to SMEs
- 0330of which: Non-financial corporations - other than SMEs
- 0340of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
- 0350Loans and advances with an accumulated coverage ratio > 90%
- 0360of which: Households
- 0370of which: Loans collateralised by residential immovable property
- 0380of which: Non-financial corporations - SMEs
- 0390of which: Commercial Real Estate (CRE) loans to SMEs
- 0400of which: Non-financial corporations - other than SMEs
And 1 more.
Columns
- 0010Gross carrying amount
- 0020of which: Exposures with forbearance measures
- 0060Non Performing
- 0070of which: Exposures with forbearance measures
- 0080Unlikely to pay that are not past due or past due <= 90 days
- 0090of which: Exposures with forbearance measures
- 0100Past due > 90 days
- 0110of which: Exposures with forbearance measures
A worked example
The first of its checks, with simple numbers.
Non-financial corporations - SMEs, non Performing 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_23.02,r0040,c0060,} >= 0The next five:
{F_23.02,r0340,c0010,} >= 0{F_23.02,r0020,c0100,} >= 0{F_23.02,r0380,c0100,} >= 0{F_23.02,r0040,c0080,} >= 0{F_23.02,r0280,c0070,} >= 0And 322 more, the same formula for the other cells it covers.
Other rules on F 23.02
- None of the 54 values it checks in loans and advances can be negative (v8310_s)Warning
- Closing balance, non-financial corporations must equal the sum of its two parts (F 24.01, v8312_h)Warning
- Exposures with forbearance measures, gross carrying amount must equal the sum of its two parts (v8309_h)Warning
- Gross carrying amount must equal non Performing plus performing (v8308_h)Warning
- None of the 204 values it checks in loans and advances can be negative (v8420_s)Warning
- Past due > 30 days <= 90 days cannot be negative (v8421_s)Warning
- Loans and advances with an accumulated coverage ratio > 90%: non-financial corporations, SMEs plus non-financial corporations, other than SMEs cannot be less than commercial Real Estate (CRE) loans to SMEs plus commercial Real Estate (CRE) loans to NFCs other than SMEs (v7962_m)Warning
- Loans and advances with an accumulated coverage ratio > 90% cannot be less than the sum of three rows (v7961_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.