Movements in allowances

Answer · verbatim

According to the sign convention described in paragraph 9 of Annex V of the Regulation (EU) No 680/2014 13 ITS on supervisory reporting of institutionsITS, every data point (cell) has a "base item" to which the credit debit attribute is allocated. As all data points in template F 12.00 are described in the DPM as Assets, the opening and closing balance of the allowances (and increases of allowances) should be reported as negative and the decreases of allowances should be reported in positive.

Taking into account the above-mentioned criteria, the reporting of the example given shall be as follows:

First, concerning the opening balance, it shall be reported the collective allowance (it is understood that the example in the question does not refer to a specific allowance collectively assessed) for -25 in row 320/column 010

Second, the recognition of the loan as impaired implies that the collective allowance shall have a closing balance of 0 while the specific should have a value of 100. Therefore, row 320/column 070 shall show a value of 0 and row 090/column 070 of -100

To reach these closing amounts, there is an increase in the specific allowance of 75 (-75 in row 090/column 020) and a transfer between allowances of 25 (-25 in row 090/column 050, and the opposite entry, +25, in row 320/column050).

*As of 1/8/2014 the content of this answer was modified to reflect the publication of the final ITS on supervisory reporting of institutions in the Official Journal of the European Union. As a result, the references to the ITS were updated and the disclaimer deleted. For reasons of transparency, revisions are highlighted in track changes.