The rule in plain words
Off-balance-sheet and contingent liabilities must equal guarantees plus other off balance sheet item.
EBA checks it for nine columns, from to the banking sector (0010) to to other undertakings of the group (0090). That makes nine 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.
To the banking sector: B - Off-balance-sheet and contingent liabilities = Guarantees + Other off balance sheet item
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 L 00.03 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
Summary template (L 00.03)
Rows
- 0049B - Off-balance-sheet and contingent liabilities
- 0050Guarantees
- 0060Other off balance sheet item
Columns
- 0010To the banking sector
- 0020To the insurance sector
- 0030To other undertakings of the group
- 0040To the banking sector
- 0050To the insurance sector
- 0060To other undertakings of the group
- 0070To the banking sector
- 0080To the insurance sector
- 0090To other undertakings of the group
A worked example
The first of its checks, with simple numbers.
Off-balance-sheet and contingent liabilities must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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}.
{L_00.03,r0049,c0010,} = {L_00.03,r0050,c0010,} + {L_00.03,r0060,c0010,}The next five:
{L_00.03,r0049,c0020,} = {L_00.03,r0050,c0020,} + {L_00.03,r0060,c0020,}{L_00.03,r0049,c0030,} = {L_00.03,r0050,c0030,} + {L_00.03,r0060,c0030,}{L_00.03,r0049,c0040,} = {L_00.03,r0050,c0040,} + {L_00.03,r0060,c0040,}{L_00.03,r0049,c0050,} = {L_00.03,r0050,c0050,} + {L_00.03,r0060,c0050,}{L_00.03,r0049,c0060,} = {L_00.03,r0050,c0060,} + {L_00.03,r0060,c0060,}And 3 more, the same formula for the other cells it covers.
Other rules on L 00.03
- Equity-type transactions, debt, asset transfer and derivatives must equal the sum of its four parts (v22598_m)Warning
- P&L transactions must equal the sum of its four parts (v22600_m)Warning
- Intragroup transactions from the insurance sector: debt instruments, to the banking sector must equal amount at reporting date (v22601_m)Not run yet
- Intragroup transactions from the insurance sector: debt instruments, to the insurance sector must equal amount at reporting date (v22602_m)Not run yet
- Intragroup transactions from the insurance sector: debt instruments, to other undertakings of the group must equal amount at reporting date (v22603_m)Not run yet
- Intragroup transactions from the bank sector: debt instruments, to the banking sector must equal amount at reporting date (v22604_m)Not run yet
- Intragroup transactions from the bank sector: debt instruments, to the insurance sector must equal amount at reporting date (v22605_m)Not run yet
- Intragroup transactions from the bank sector: debt instruments, to other undertakings of the group must equal amount at reporting date (v22606_m)Not run yet
Checks like this one, run at the point of submission, are the first step to real-time supervision.