The rule in plain words
None of the values it checks in loans and advances can be negative.
EBA checks it for eleven columns, from exposures with forbearance measures (0020) to past due > 7 years (0170). And for 21 rows, from financial guarantees received on loans and advances (0010) to commercial Real Estate (CRE) loans to NFCs other than SMEs (0210). That makes 231 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.
of which: Exposures with forbearance measures: of which: Households >= 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 23.05 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: collateral received and financial guarantees received (F 23.05)
Rows
- 0010Financial guarantees received on loans 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
- 0080Collateral received on loans and advances
- 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
- 0150Immovable property collateral received on loans and advances
- 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
Columns
- 0020of which: Exposures with forbearance measures
- 0050of which: Exposures with forbearance measures
- 0070of which: Exposures with forbearance measures
- 0090of which: Exposures with forbearance measures
- 0110of which: Exposures with forbearance measures
- 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.
Households, exposures with forbearance measures 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_23.05,r0160,c0050,} >= 0The next five:
{F_23.05,r0080,c0170,} >= 0{F_23.05,r0190,c0070,} >= 0{F_23.05,r0140,c0050,} >= 0{F_23.05,r0090,c0070,} >= 0{F_23.05,r0190,c0090,} >= 0And 225 more, the same formula for the other cells it covers.
Other rules on F 23.05
- Maximum amount of the collateral or guarantee that can be considered must equal the sum of its two parts (v8336_h)Warning
- None of the 138 values it checks in loans and advances can be negative (v8338_s)Warning
- Exposures with forbearance measures, maximum amount of the collateral or guarantee that can be considered must equal the sum of its two parts (v8335_h)Warning
- Memorandum item: collateral received on loans and advances, uncapped amounts cannot be less than collateral received on loans and advances (v8022_m)Warning
- Immovable property collateral received on loans and advances: 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 (v8021_m)Warning
- Immovable property collateral received on loans and advances cannot be less than the sum of three rows (v8020_m)Warning
- Immovable property collateral received on loans and advances cannot be more than collateral received on loans and advances (v8019_m)Warning
- Collateral received on loans and advances: 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 (v8018_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.