The rule in plain words
None of the values it checks in liability insolvency classes can be negative.
EBA checks it for six columns: outstanding amount of total liabilities in ranking, liabilities governed by the law of a third country, not including contractual recognition, currently notified to the resolution authority, excluded from bail-in and nominal amount of total liabilities currently notified to the resolution authority. That makes six 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.
Nominal amount of total liabilities currently notified to the resolution authority: Nominal amount of total liabilities currently notified to the resolution authority >= 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 N 02.00 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
Liability insolvency classes (N 02.00)
Columns
- 0020Outstanding amount of total liabilities in ranking
- 0030Of which: liabilities governed by the law of a third country
- 0040Of which: not including contractual recognition
- 0050Of which: currently notified to the resolution authority
- 0060Of which: excluded from bail-in
- 0070Nominal amount of total liabilities currently notified to the resolution authority
A worked example
The first of its checks, with simple numbers.
Nominal amount of total liabilities currently notified to the resolution authority 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}.
{N_02.00,,c0070,} >= 0The next five:
{N_02.00,,c0060,} >= 0{N_02.00,,c0030,} >= 0{N_02.00,,c0050,} >= 0{N_02.00,,c0020,} >= 0{N_02.00,,c0040,} >= 0Other rules on N 02.00
- Outstanding amount of total liabilities in ranking cannot be less than excluded from bail-in (v10730_m)Warning
- Liabilities governed by the law of a third country cannot be less than currently notified to the resolution authority (v10729_m)Warning
- Liabilities governed by the law of a third country cannot be less than not including contractual recognition (v10728_m)Warning
- Outstanding amount of total liabilities in ranking cannot be less than liabilities governed by the law of a third country (v10727_m)Warning
Every Notifications rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.