The rule in plain words
None of the values it checks in loans and advances can be negative.
EBA checks it for seven columns: total, households, loans collateralised by residential immovable property, non-financial corporations, SMEs, commercial Real Estate (CRE) loans and commercial Real Estate (CRE) loans to NFCs other than SMEs. And for four rows: non-performing loans and advances: weighted average time since past due date (in years), net cumulated recoveries from litigation procedures concluded during the period, gross carrying amount reduction from litigation procedures concluded during the period, and average duration of litigation procedures concluded in the period (in years). That makes 28 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: Non-financial corporations: Net cumulated recoveries from litigation procedures concluded during the period >= 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 47.00 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: average duration and recovery periods (F 47.00)
Rows
- 0010Non-performing loans and advances: weighted average time since past due date (in years)
- 0020Net cumulated recoveries from litigation procedures concluded during the period
- 0030Gross carrying amount reduction from litigation procedures concluded during the period
- 0040Average duration of litigation procedures concluded in the period (in years)
Columns
- 0010TOTAL
- 0020of which: Households
- 0030of which: loans collateralised by residential immovable property
- 0040of which: Non-financial corporations
- 0050of which: SMEs
- 0060of which: Commercial Real Estate (CRE) loans
- 0070of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
A worked example
The first of its checks, with simple numbers.
Net cumulated recoveries from litigation procedures concluded during the period, non-financial corporations 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_47.00,r0020,c0040,} >= 0The next five:
{F_47.00,r0030,c0020,} >= 0{F_47.00,r0010,c0040,} >= 0{F_47.00,r0010,c0050,} >= 0{F_47.00,r0020,c0060,} >= 0{F_47.00,r0010,c0020,} >= 0And 22 more, the same formula for the other cells it covers.
Other rules on F 47.00
- Commercial Real Estate (CRE) loans to NFCs other than SMEs cannot be more than non-financial corporations (v8113_m)Warning
- Commercial Real Estate (CRE) loans cannot be more than SMEs (v8112_m)Warning
- SMEs cannot be more than non-financial corporations (v8111_m)Warning
- Non-financial corporations cannot be more than total (v8110_m)Warning
- Loans collateralised by residential immovable property cannot be more than households (v8109_m)Warning
- Households cannot be more than total (v8108_m)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of SMEs (v23576_h)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.