The rule in plain words
None of the values it checks in collateral obtained can be negative.
EBA checks it for nine columns, from gross carrying amount (0010) to carrying amount (0130). And for eleven rows, from residential immovable property (0010) to total (0110). That makes 99 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: Of which: Land related to commercial real estate corporations (excluding agricultural land) >= 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 25.02 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
Rows
- 0010Residential immovable property
- 0020Of which: under construction / development
- 0030Commercial immovable property
- 0040Of which: under construction / development
- 0050Of which: Land related to commercial real estate corporations (excluding agricultural land)
- 0060Of which: Land with planning permission for development
- 0070Of which: Land without planning permission for development
- 0080Movable property
- 0090Equity and debt securities
- 0100Other
- 0110Total
Columns
- 0010Gross carrying amount
- 0030Value at initial recognition
- 0040Carrying amount
- 0060Value at initial recognition
- 0070Carrying amount
- 0090Value at initial recognition
- 0100Carrying amount
- 0120Value at initial recognition
- 0130Carrying amount
A worked example
The first of its checks, with simple numbers.
Land related to commercial real estate corporations (excluding agricultural land), 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_25.02.a,r0050,c0030,} >= 0The next five:
{F_25.02.a,r0090,c0070,} >= 0{F_25.02.a,r0100,c0070,} >= 0{F_25.02.a,r0010,c0090,} >= 0{F_25.02.a,r0040,c0060,} >= 0{F_25.02.a,r0040,c0070,} >= 0And 93 more, the same formula for the other cells it covers.
Other rules on F 25.02.a
- Each of the 55 values it checks in collateral obtained cannot be more than zero (v8354_s)Warning
- Equity and debt securities: value at initial recognition in F 25.02.a cannot be less than value at initial recognition in F 25.02.c (v8453_m)Warning
- Other: value at initial recognition in F 25.02.a cannot be less than value at initial recognition in F 25.02.c (v8454_m)Warning
- Total: value at initial recognition in F 25.02.a cannot be less than value at initial recognition in F 25.02.c (v8455_m)Warning
- Equity and debt securities: carrying amount in F 25.02.a cannot be less than carrying amount in F 25.02.c (v8456_m)Warning
- Other: carrying amount in F 25.02.a cannot be less than carrying amount in F 25.02.c (v8457_m)Warning
- Total: carrying amount in F 25.02.a cannot be less than carrying amount in F 25.02.c (v8458_m)Warning
- Total must equal the sum of its five parts (v8089_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.