Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

None of the four values it checks in impracticability of contractual recognition of bail-in can be negative (N 01.01, EBA rule v10852_s)

A warning in the bail-in impracticability notifications return (Notifications), on template N 01.01, impracticability of contractual recognition of bail-in by contract/instrument.

Check your file against this ruleWhat to do if it fails

The rule in plain words

None of the values it checks in impracticability of contractual recognition of bail-in can be negative.

EBA checks it for two columns: nominal amount in the main original currency and nominal amount in local currency. And on two sheets: contracts creating new liabilities and contracts amending existing liabilities. That makes four checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Nominal amount in local currency: Nominal amount in local currency, Contracts creating new liabilities >= 0

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
  3. 03EBA compares the values exactly here: there is no rounding tolerance.
  4. 04It runs only when your filing indicators mark N 01.01 as reported.
  5. 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

Impracticability of contractual recognition of bail-in by contract/instrument (N 01.01)

Columns

  • 0110Nominal amount in the main original currency
  • 0130Nominal amount in local currency

Sheets

  • 0001Contracts creating new liabilities
  • 0002Contracts amending existing liabilities

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Nominal amount in local currency must then be at least 0.

0Passes
-100Fails

A file that reports 0 passes. One that reports -100 fails, by 100.

The numbers are illustrative.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{N_01.01,,c0130,s0001} >= 0

The next three:

{N_01.01,,c0110,s0002} >= 0{N_01.01,,c0130,s0002} >= 0{N_01.01,,c0110,s0001} >= 0

Every Notifications rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.