The rule in plain words
Non-performing gross carrying amount cannot be less than defaulted gross carrying amount.
EBA checks it for 20 rows, from agriculture, forestry and fishing (0010) to loans and advances (0190). That makes 20 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.
H Transport and storage, Of which: non-performing >= H Transport and storage, of which: defaulted
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 06.01 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
- 0010A Agriculture, forestry and fishing
- 0020B Mining and quarrying
- 0030C Manufacturing
- 0040D Electricity, gas, steam and air conditioning supply
- 0050E Water supply
- 0060F Construction
- 0070G Wholesale and retail trade
- 0080H Transport and storage
- 0090I Accommodation and food service activities
- 0100J Information and communication
- 0105K Financial and insurance activities
- 0110L Real estate activities
- 0120M Professional, scientific and technical activities
- 0130N Administrative and support service activities
- 0140O Public administration and defence, compulsory social security
- 0150P Education
- 0160Q Human health services and social work activities
- 0170R Arts, entertainment and recreation
- 0180S Other services
- 0190Loans and advances
Columns
- 0012Of which: non-performing
- 0013of which: defaulted
A worked example
The first of its checks, with simple numbers.
Defaulted gross carrying amount can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 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_06.01,r0080,c0012,} >= {F_06.01,r0080,c0013,}The next five:
{F_06.01,r0120,c0012,} >= {F_06.01,r0120,c0013,}{F_06.01,r0040,c0012,} >= {F_06.01,r0040,c0013,}{F_06.01,r0105,c0012,} >= {F_06.01,r0105,c0013,}{F_06.01,r0140,c0012,} >= {F_06.01,r0140,c0013,}{F_06.01,r0190,c0012,} >= {F_06.01,r0190,c0013,}And 14 more, the same formula for the other cells it covers.
Other rules on F 06.01
- Each of the 40 values it checks in breakdown of loans and advances other than held for trading cannot be more than zero (v5676_s)Warning
- None of the 80 values it checks in breakdown of loans and advances other than held for trading can be negative (v5675_s)Warning
- Loans and advances subject to impairment cannot be more than gross carrying amount (v5366_m)Blocking
- A calculation check across breakdown of loans and advances other than held for trading, and geographical breakdown of assets (F 20.04, v5351_m)Warning
- A matching-values check across breakdown of loans and advances other than held for trading, and information on performing and non-performing exposures (F 18.00.b, v5266_m)Blocking
- Loans and advances, accumulated impairment must equal the sum of its two parts (v5265_m)Warning
- Loans and advances, loans and advances subject to impairment must equal the sum of its two parts (v5264_m)Blocking
- A balancing check across breakdown of loans and advances other than held for trading, and information on performing and non-performing exposures (F 18.00.b, v5015_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.