The rule in plain words
None of the values it checks in loans and advances can be negative.
EBA checks it for seven columns: non-performing exposures - loans and advances, households, loans collateralised by residential immovable property, non-financial corporations, SMEs, commercial Real Estate (CRE) loans to SMEs, and commercial Real Estate (CRE) loans to NFCs other than SMEs. And for 16 rows, from opening balance (0010) to closing balance (0320). That makes 112 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: Commercial Real Estate (CRE) loans to NFCs other than SMEs: Closing balance >= 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 24.01 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
Loans and advances: inflows and outflows of non-performing exposures (F 24.01)
Rows
- 0010Opening balance
- 0020Inflows
- 0030Inflow due to reclassification from performing not forborne
- 0040Inflow due to reclassification from performing forborne
- 0050of which: reclassified from performing forborne exposures under probation previously reclassified from non-performing
- 0060Inflow due to purchase of exposures
- 0070Inflow due to accrued interest
- 0080Inflow due to other reasons
- 0090Of which: Inflow more than once
- 0100Of which: Inflow of exposures granted in the past 24 months
- 0110Of which: Inflow of exposures granted during the period
- 0170Net cumulated recoveries from collateral liquidation
- 0200Net cumulated recoveries from taking possession of collateral
- 0230Net cumulated recoveries from sale of instruments
- 0260Net cumulated recoveries from risk transfers
- 0320Closing balance
Columns
- 0010Non-performing exposures - loans and advances
- 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 to SMEs
- 0070of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
A worked example
The first of its checks, with simple numbers.
Closing balance, commercial Real Estate (CRE) loans to NFCs other than SMEs 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_24.01,r0320,c0070,} >= 0The next five:
{F_24.01,r0260,c0010,} >= 0{F_24.01,r0200,c0070,} >= 0{F_24.01,r0040,c0040,} >= 0{F_24.01,r0010,c0020,} >= 0{F_24.01,r0100,c0020,} >= 0And 106 more, the same formula for the other cells it covers.
Other rules on F 24.01
- Each of the 112 values it checks in loans and advances cannot be more than zero (v903651_s)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of SMEs (v23574_h)Warning
- Closing balance must equal opening balance plus inflows plus outflows (v8051_m)Warning
- Outflow due to risk transfers cannot be more than write-offs in the context of risk transfers (v8050_m)Warning
- Outflow due to sale of instruments cannot be more than write-offs in the context of sale of instruments (v8049_m)Warning
- Outflow due to taking possession of collateral cannot be more than write-offs in the context of taking possession of collateral (v8048_m)Warning
- Outflow due to collateral liquidations cannot be more than write-offs in the context of collateral liquidations (v8047_m)Warning
- Outflows cannot be more than outflow of non-performing exposures that became non-performing during the period (v8046_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.