The rule in plain words
Fair value of collateral received or own debt securities issued available for encumbrance cannot be negative.
EBA checks it for 13 rows, from collateral received by the reporting institution (0130) to own covered bonds and securitisation issued and not yet pledged (0245). That makes 13 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.
Fair value of collateral received or own debt securities issued available for encumbrance: Own debt securities issued other than own covered bonds or securitisations >= 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 32.02 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
Asset encumbrance: encumbrance overview - collateral (a) (F 32.02.a)
Rows
- 0130Collateral received by the reporting institution
- 0140Loans on demand
- 0150Equity instruments
- 0160Debt securities
- 0170Of which: covered bonds
- 0180Of which: securitisations
- 0190Of which: issued by general governments
- 0200Of which: issued by financial corporations
- 0210Of which: issued by non-financial corporations
- 0220Loans and advances other than loans on demand
- 0230Other collateral received
- 0240Own debt securities issued other than own covered bonds or securitisations
- 0245Own covered bonds and securitisation issued and not yet pledged
Column
- 0040Fair value of collateral received or own debt securities issued available for encumbrance
A worked example
The first of its checks, with simple numbers.
Own debt securities issued other than own covered bonds or securitisations, fair value of collateral received or own debt securities issued available for encumbrance 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_32.02.a,r0240,c0040,} >= 0The next five:
{F_32.02.a,r0160,c0040,} >= 0{F_32.02.a,r0130,c0040,} >= 0{F_32.02.a,r0140,c0040,} >= 0{F_32.02.a,r0170,c0040,} >= 0{F_32.02.a,r0190,c0040,} >= 0And 7 more, the same formula for the other cells it covers.
Other rules on F 32.02.a
- None of the 60 values it checks in asset encumbrance can be negative (v4366_s)Warning
- None of the 20 values it checks in asset encumbrance can be negative (v4365_s)Warning
- Total unencumbered collateral received: central bank eligible, total must equal the sum of its two parts (v3017_m)Warning
- Total unencumbered collateral received, total must equal the sum of its four parts (v3016_m)Warning
- Total encumbered collateral received: central bank eligible, total must equal the sum of its two parts (v3015_m)Warning
- Total encumbered collateral received, total must equal the sum of its two parts (v3014_m)Warning
- Total unencumbered collateral received, own debt securities issued other than own covered bonds or securitisations must equal the sum of its two parts (v3013_m)Warning
- Total unencumbered collateral received, other collateral received must equal the sum of its two parts (v3012_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.