The rule in plain words
For cash, reserves and HQLA exposures to central banks: HQLA cannot be negative.
EBA checks it for 39 rows, from unencumbered or encumbered for a residual maturity of less than six months (0040) to RSF from contributions to CCP default fund (0960). That makes 39 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.
HQLA: unencumbered or encumbered for a residual maturity of less than six months >= 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 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), total (C 80.00.a)
Rows
- 0040unencumbered or encumbered for a residual maturity of less than six months
- 0050encumbered for a residual maturity of at least six months but less than one year
- 0060encumbered for a residual maturity of one year or more
- 0100unencumbered or encumbered for a residual maturity of less than six months
- 0110encumbered for a residual maturity of at least six months but less than one year
- 0120encumbered for a residual maturity of one year or more
- 0140unencumbered or encumbered for a residual maturity of less than six months
- 0150encumbered for a residual maturity of at least six months but less than one year
- 0160encumbered for a residual maturity of one year or more
- 0180unencumbered or encumbered for a residual maturity of less than six months
- 0190encumbered for a residual maturity of at least six months but less than one year
- 0200encumbered for a residual maturity of one year or more
- 0220unencumbered or encumbered for a residual maturity of less than six months
- 0230encumbered for a residual maturity of at least six months but less than one year
- 0240encumbered for a residual maturity of one year or more
- 0260unencumbered or encumbered for a residual maturity of less than six months
- 0270encumbered for a residual maturity of at least six months but less than one year
- 0280encumbered for a residual maturity of one year or more
- 0300unencumbered or encumbered for a residual maturity of less than six months
- 0310encumbered for a residual maturity of at least six months but less than one year
- 0320encumbered for a residual maturity of one year or more
- 0340unencumbered or encumbered for a residual maturity of less than six months
- 0350encumbered for a residual maturity of at least six months but less than one year
- 0360encumbered for a residual maturity of one year or more
- 0380unencumbered or encumbered for a residual maturity of less than six months
- 0390encumbered for a residual maturity of at least six months but less than one year
- 0400encumbered for a residual maturity of one year or more
- 0420unencumbered or encumbered for a residual maturity of less than six months
- 0430encumbered for a residual maturity of at least six months but less than one year
- 0440encumbered for a residual maturity of one year or more
- 0460unencumbered or encumbered for a residual maturity of less than six months
- 0470encumbered for a residual maturity of at least six months but less than one year
- 0480encumbered for a residual maturity of one year or more
- 0500unencumbered or encumbered for a residual maturity of less than one year
- 0510encumbered for a residual maturity of one year or more
- 0530unencumbered or encumbered for a residual maturity of less than one year
- 0540encumbered for a residual maturity of one year or more
- 0550HQLAs encumbered for a residual maturity of one year or more in a cover pool
- 0960RSF from contributions to CCP default fund
Column
- 0120HQLA
A worked example
The first of its checks, with simple numbers.
Unencumbered or encumbered for a residual maturity of less than six months, HQLA 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}.
{C_80.00.a,r0040,c0120,} >= 0The next five:
{C_80.00.a,r0320,c0120,} >= 0{C_80.00.a,r0380,c0120,} >= 0{C_80.00.a,r0160,c0120,} >= 0{C_80.00.a,r0420,c0120,} >= 0{C_80.00.a,r0310,c0120,} >= 0And 33 more, the same formula for the other cells it covers.
Other rules on C 80.00.a
- Required stable funding: HQLA cannot be negative (v11538_s)Warning
- Required stable funding cannot be negative (v11537_s)Warning
- Loans to non-financial customers other than central banks where those loans are assigned a risk weight of 35% or less: ≥ 1 year cannot be negative (v11536_s)Warning
- RSF from interdependent assets: ≥ 6 months to < 1 year cannot be negative (v11535_s)Warning
- RSF from interdependent assets: < 6 months cannot be negative (v11534_s)Warning
- Collateralized by level 1 assets eligible for 0% LCR haircut: ≥ 1 year cannot be negative (v11533_s)Warning
- RSF from central bank assets: ≥ 6 months to < 1 year cannot be negative (v11532_s)Warning
- Required stable funding: < 6 months cannot be negative (v11531_s)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.