The rule in plain words
Counterparty is central bank must equal these three added up:
- Collateral that qualifies as a liquid asset
- Collateral is used to cover a short position
- Collateral that does not qualify as a liquid asset
EBA checks it for three columns, all for cap on inflows: subject to the 75%, subject to the 90% and exempted from the. That makes three 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.
Subject to the 90% cap on inflows: Counterparty is central bank = collateral that qualifies as a liquid asset + collateral is used to cover a short position + collateral that does not qualify as a liquid asset
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C 74.00 as reported.
- 06This 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
Liquidity coverage, inflows, total (DA) (C 74.00.a)
Rows
- 0265Counterparty is central bank
- 0267collateral that qualifies as a liquid asset
- 0297collateral is used to cover a short position
- 0299collateral that does not qualify as a liquid asset
Columns
- 0010Subject to the 75% cap on inflows
- 0020Subject to the 90% cap on inflows
- 0030Exempted from the cap on inflows
A worked example
The first of its checks, with simple numbers.
Counterparty is central bank must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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_74.00.a,r0265,c0020,} = {C_74.00.a,r0267,c0020,} + {C_74.00.a,r0297,c0020,} + {C_74.00.a,r0299,c0020,}The next two:
{C_74.00.a,r0265,c0030,} = {C_74.00.a,r0267,c0030,} + {C_74.00.a,r0297,c0030,} + {C_74.00.a,r0299,c0030,}{C_74.00.a,r0265,c0010,} = {C_74.00.a,r0267,c0010,} + {C_74.00.a,r0297,c0010,} + {C_74.00.a,r0299,c0010,}Other rules on C 74.00.a
- Counterparty is non-central bank must equal the sum of its three parts (v10629_m)Warning
- Subject to the 90% cap on inflows: if amount is zero or more, applicable weight cannot be negative (v10719_m)Warning
- Exempted from the cap on inflows: if amount is zero or more, applicable weight cannot be negative (v10721_m)Warning
- A calculation check across liquidity coverage, inflows, total (DA) and liquidity coverage, collateral swaps, total (DA) (C 75.01.a, row 0410, v11880_m)Warning
- A calculation check across liquidity coverage, inflows, total (DA) and liquidity coverage, collateral swaps, total (DA) (C 75.01.a, row 0410, v11882_m)Warning
- A calculation check across liquidity coverage, inflows, total (DA) and liquidity coverage, collateral swaps, total (DA) (C 75.01.a, row 0410, v11884_m)Warning
- None of the 54 values it checks in liquidity coverage, inflows, total (DA) can be negative (v7779_s)Warning
- None of the 93 values it checks in liquidity coverage, inflows, total (DA) can be negative (v7766_s)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.