The rule in plain words
None of the values it checks in summary template can be negative.
EBA checks it for three columns: to the banking sector, to the insurance sector and to other undertakings of the group. And for 14 rows, from equity-type transactions, debt, asset transfer and derivatives (0009) to dividends (0100). That makes 42 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 insurance sector: Guarantees >= 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 L 00.03 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
Summary template (L 00.03)
Rows
- 0009A - Equity-type transactions, debt, asset transfer and derivatives
- 0010Debt instruments
- 0020Capital instruments
- 0030Other asset transfers
- 0040Derivatives
- 0049B - Off-balance-sheet and contingent liabilities
- 0050Guarantees
- 0060Other off balance sheet item
- 0068C- Insurance/reinsurance transactions
- 0069D - P&L transactions
- 0070Commissions paid to business providers
- 0080Fees and other charges
- 0090Interests
- 0100Dividends
Columns
- 0010To the banking sector
- 0020To the insurance sector
- 0030To other undertakings of the group
A worked example
The first of its checks, with simple numbers.
Guarantees, to the insurance sector 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}.
{L_00.03,r0050,c0020,} >= 0The next five:
{L_00.03,r0050,c0030,} >= 0{L_00.03,r0030,c0030,} >= 0{L_00.03,r0009,c0010,} >= 0{L_00.03,r0070,c0030,} >= 0{L_00.03,r0030,c0010,} >= 0And 36 more, the same formula for the other cells it covers.
Other rules on L 00.03
- None of the 78 values it checks in summary template can be negative (v22733_s)Warning
- Intragroup transactions from other undertakings of the group: dividends, to other undertakings of the group must equal amount (v22693_m)Not run yet
- Intragroup transactions from other undertakings of the group: dividends, to the insurance sector must equal amount (v22692_m)Not run yet
- Intragroup transactions from other undertakings of the group: dividends, to the banking sector must equal amount (v22691_m)Not run yet
- Intragroup transactions from the bank sector: dividends, to other undertakings of the group must equal amount (v22690_m)Not run yet
- Intragroup transactions from the bank sector: dividends, to the insurance sector must equal amount (v22689_m)Not run yet
- Intragroup transactions from the bank sector: dividends, to the banking sector must equal amount (v22688_m)Not run yet
- Intragroup transactions from the insurance sector: dividends, to other undertakings of the group must equal amount (v22687_m)Not run yet
Checks like this one, run at the point of submission, are the first step to real-time supervision.