The rule in plain words
Accumulated partial write-offs must equal non Performing plus performing.
EBA checks it for seven rows: loans and advances, households, loans collateralised by residential immovable property, non-financial corporations - SMEs, commercial Real Estate (CRE) loans to SMEs, non-financial corporations - other than SMEs, and commercial Real Estate (CRE) loans to NFCs other than SMEs. 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.
of which: Households, Accumulated partial write-offs = of which: Households, Non Performing + of which: Households, Performing
What to do if your filing fails it
- 01Open the template 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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 23.06 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
Loans and advances: accumulated partial write-offs (F 23.06)
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
Columns
- 0010Accumulated partial write-offs
- 0030Performing
- 0060Non Performing
A worked example
The first of its checks, with simple numbers.
Accumulated partial write-offs 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_23.06,r0020,c0010,} = {F_23.06,r0020,c0060,} + {F_23.06,r0020,c0030,}The next five:
{F_23.06,r0040,c0010,} = {F_23.06,r0040,c0060,} + {F_23.06,r0040,c0030,}{F_23.06,r0030,c0010,} = {F_23.06,r0030,c0060,} + {F_23.06,r0030,c0030,}{F_23.06,r0070,c0010,} = {F_23.06,r0070,c0060,} + {F_23.06,r0070,c0030,}{F_23.06,r0060,c0010,} = {F_23.06,r0060,c0060,} + {F_23.06,r0060,c0030,}{F_23.06,r0050,c0010,} = {F_23.06,r0050,c0060,} + {F_23.06,r0050,c0030,}And 1 more, the same formula for the other cells it covers.
Other rules on F 23.06
- Exposures with forbearance measures, accumulated partial write-offs must equal the sum of its two parts (v8340_h)Warning
- Each of the 119 values it checks in loans and advances: accumulated partial write-offs cannot be more than zero (v8341_s)Warning
- Non-financial corporations, SMEs plus non-financial corporations, other than SMEs cannot be more than commercial Real Estate (CRE) loans to SMEs plus commercial Real Estate (CRE) loans to NFCs other than SMEs (v8034_m)Warning
- Loans and advances cannot be more than the sum of three rows (v8033_m)Warning
- Past due > 90 days must equal the sum of its six parts (v8032_m)Warning
- Past due > 90 days cannot be more than exposures with forbearance measures (v8031_m)Warning
- Unlikely to pay that are not past due or past due <= 90 days cannot be more than exposures with forbearance measures (v8030_m)Warning
- Exposures with forbearance measures, non Performing must equal the sum of its two parts (v8029_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.