Question
Should the severity of EBA validation rules v3900_s and v5693_s be changed from ‘non-blocking’ to ‘warning’ to allow for the possibility of negative interest income values?
Background on the question
Under IFRS credit institution have a negative interest income for derivatives held for trading in the current year when this results from a correction (repayment) on interest income that was reported in previous financial years. Under these circumstances a negative interest income should be reported on Finrep templates F02.00; r0020; c0010 and F16.01; r0010/r0015; c0010. As a result EBA validations eba_3900_s and eba_v5693_s, which validate that the Finrep reported interest income on these rows should be equal or higher than 0, will signal a non-blocking error. Should the severity of validation rules v3900_s and v5693_s be changed from ‘non-blocking’ to ‘warning’ to allow for the possibility of negative interest income values?
Answer
This question has been rejected because the matter it refers to has already been identified and will be considered for a forthcoming releases of the validation rules.