The rule in plain words
Specialised lending cannot be negative.
EBA checks it for 22 rows, from loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation (0010) to total GAR assets (0320). That makes 22 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.
Of which specialised lending: Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation >= 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 D 07.00 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
Mitigating actions: assets for the calculation of GAR (I) (D 07.00.a)
Rows
- 0010Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
- 0020Financial corporations
- 0030Credit institutions
- 0040Loans and advances
- 0050Debt securities, including UoP
- 0070Other financial corporations
- 0080of which investment firms
- 0090Loans and advances
- 0100Debt securities, including UoP
- 0120of which management companies
- 0130Loans and advances
- 0140Debt securities, including UoP
- 0160of which insurance undertakings
- 0170Loans and advances
- 0180Debt securities, including UoP
- 0200Non-financial corporations (subject to NFRD disclosure obligations)
- 0210Loans and advances
- 0220Debt securities, including UoP
- 0280Local governments financing
- 0290Housing financing
- 0310Collateral obtained by taking possession: residential and commercial immovable properties
- 0320TOTAL GAR ASSETS
Column
- 0090Of which specialised lending
A worked example
The first of its checks, with simple numbers.
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation, specialised lending 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}.
{D_07.00.a,r0010,c0090,} >= 0The next five:
{D_07.00.a,r0020,c0090,} >= 0{D_07.00.a,r0030,c0090,} >= 0{D_07.00.a,r0040,c0090,} >= 0{D_07.00.a,r0050,c0090,} >= 0{D_07.00.a,r0070,c0090,} >= 0And 16 more, the same formula for the other cells it covers.
Other rules on D 07.00.a
- None of the 108 values it checks in mitigating actions can be negative (v12819_s)Warning
- None of the 52 values it checks in mitigating actions can be negative (v12818_s)Warning
- None of the 248 values it checks in mitigating actions can be negative (v12817_s)Warning
- Total assets must equal the sum of its two parts (v12731_m)Warning
- Total assets excluded from numerator and denominator must equal the sum of its three parts (v12730_m)Warning
- Total assets in the denominator (GAR) must equal the sum of its seven parts (v12729_m)Warning
- Total GAR assets must equal the sum of its two parts (v12727_m)Warning
- EU non-financial corporations (not subject to NFRD disclosure obligations) must equal the sum of its three parts (v23934_h)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.