The rule in plain words
Loans and advances collateralised by immovable property cannot be negative.
EBA checks it for seven columns: past due > 30 days <= 90 days, past due > 90 days <= 180 days, past due > 180 days <= 1 year, past due > 1 years <= 2 years, past due > 2 years <= 5 years, past due > 5 years <= 7 years and past due > 7 years. That makes seven 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.
Past due > 7 years: Loans and advances collateralised by immovable property >= 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 23.03 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 collateralised by immovable property: Breakdown by LTV ratios (F 23.03)
Row
- 0010Loans and advances collateralised by immovable property
Columns
- 0040of which: Past due > 30 days <= 90 days
- 0120Past due > 90 days <= 180 days
- 0130Past due > 180 days <= 1 year
- 0140Past due > 1 years <= 2 years
- 0150Past due > 2 years <= 5 years
- 0160Past due > 5 years <= 7 years
- 0170Past due > 7 years
A worked example
The first of its checks, with simple numbers.
Loans and advances collateralised by immovable property, past due > 7 years 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_23.03,r0010,c0170,} >= 0The next five:
{F_23.03,r0010,c0140,} >= 0{F_23.03,r0010,c0130,} >= 0{F_23.03,r0010,c0120,} >= 0{F_23.03,r0010,c0040,} >= 0{F_23.03,r0010,c0150,} >= 0And 1 more, the same formula for the other cells it covers.
Other rules on F 23.03
- None of the 200 values it checks in loans and advances collateralised can be negative (v8323_s)Warning
- Gross carrying amount must equal non Performing plus performing (v8320_h)Warning
- Commercial Real Estate loans to non-financial corporations (NFCs) other than SMEs) collateralised by immovable property cannot be less than the sum of three rows (v7984_m)Warning
- Commercial Real Estate loans to small and medium-sized enterprises (NFCs) collateralised by immovable property cannot be less than the sum of three rows (v7983_m)Warning
- Loans and advances to non-financial corporations (NFCs) other than SMEs collateralised by commercial immovable property cannot be less than the sum of three rows (v7982_m)Warning
- Loans and advances to small and medium-sized enterprises (NFCs) collateralised by commercial immovable property cannot be less than the sum of three rows (v7981_m)Warning
- Non Performing: loans and advances collateralised by immovable property cannot be less than the sum of two rows (v7980_m)Warning
- Past due > 90 days: loans and advances collateralised by immovable property cannot be less than the sum of two rows (v7979_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.