The rule in plain words
Loans to non-financial customers other than central banks where those loans are assigned a risk weight of 35% or less cannot be less than residential mortgages.
EBA checks it for four columns: < 6 months, ≥ 6 months to < 1 year, ≥ 1 year and required stable funding. That makes four 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.
< 6 months: loans to non-financial customers other than central banks where those loans are assigned a risk weight of 35% or less >= of which, residential mortgages
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 C 80.00 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
NSFR - required stable funding (I), significant currencies (C 80.00.w)
Rows
- 0750loans to non-financial customers other than central banks where those loans are assigned a risk weight of 35% or less
- 0760of which, residential mortgages
Columns
- 0010< 6 months
- 0020≥ 6 months to < 1 year
- 0030≥ 1 year
- 0130Required stable funding
A worked example
The first of its checks, with simple numbers.
Residential mortgages 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}.
{C_80.00.w,r0750,c0010,} >= {C_80.00.w,r0760,c0010,}The next three:
{C_80.00.w,r0750,c0030,} >= {C_80.00.w,r0760,c0030,}{C_80.00.w,r0750,c0020,} >= {C_80.00.w,r0760,c0020,}{C_80.00.w,r0750,c0130,} >= {C_80.00.w,r0760,c0130,}Other rules on C 80.00.w
- Other loans to non-financial customers other than central banks must equal the sum of its two parts (v10122_m)Warning
- Other loans to non-financial customers other than central banks cannot be less than residential mortgages (v10124_m)Warning
- Securities financing transactions with financial customers must equal the sum of its two parts (v10121_m)Warning
- RSF from interdependent assets must equal the sum of its five parts (v10125_m)Warning
- RSF from loans must equal the sum of its seven parts (v10120_m)Warning
- RSF from central bank assets must equal the sum of its two parts (v10119_m)Warning
- RSF from other assets must equal the sum of its four parts (v10127_m)Warning
- Physically traded commodities must equal the sum of its two parts (v10128_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.