The rule in plain words
Amount or market value cannot be negative.
EBA checks it for 24 rows, from reserve of assets (0010) to value of the asset referenced (0380). That makes 24 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.
Assets representing claims on or guaranteed by Credit institutions (protected by Member State government, promotional lender) >= 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 Q 03.01 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
S_03.01: composition of the reserve of assets by type of assets and maturities (Q 03.01)
Rows
- 0010Reserve of assets
- 0020Unadjusted reserve of assets
- 0030Coins and banknotes
- 0040Deposits with credit institutions
- 0050Commodities
- 0060of which: based on gold
- 0070of which: based on other precious metals
- 0080of which: based on industry metals
- 0090of which: based on energy
- 0100of which: based on livestock
- 0110of which: based on grains
- 0120of which: based on softs
- 0130Assets representing claims on or guaranteed by Central banks
- 0140Assets representing claims on or guaranteed by Central governments
- 0150Assets representing claims on or guaranteed by Regional governments / local authorities
- 0160Assets representing claims on or guaranteed by Public Sector Entities
- 0170Assets representing claims on or guaranteed by Credit institutions (protected by Member State government, promotional lender)
- 0180Assets representing claims on or guaranteed by Multilateral development banks and international organisations
- 0190Qualifying CIU units
- 0200Extremely high quality covered bonds
- 0210Other highly liquid financial instruments, used as assets referenced
- 0220of which: Crypto assets
- 0230Others
- 0380Value of the asset referenced
Column
- 0010Amount/Market value
A worked example
The first of its checks, with simple numbers.
Assets representing claims on or guaranteed by credit institutions (protected by Member State government, promotional lender) 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}.
{Q_03.01,r0170,c0010,} >= 0The next five:
{Q_03.01,r0130,c0010,} >= 0{Q_03.01,r0200,c0010,} >= 0{Q_03.01,r0380,c0010,} >= 0{Q_03.01,r0220,c0010,} >= 0{Q_03.01,r0080,c0010,} >= 0And 18 more, the same formula for the other cells it covers.
Other rules on Q 03.01
- Collateral swaps: collateral inflows maturing within the next 5 working days cannot be less than extremely high quality covered bonds (v22933_m)Warning
- Collateral swaps: collateral outflows maturing within the next 5 working days cannot be less than extremely high quality covered bonds (v22932_m)Warning
- Repos: collateral inflows maturing within the next 5 working days cannot be less than extremely high quality covered bonds (v22931_m)Warning
- Reverse repos: collateral outflows maturing within the next 5 working days cannot be less than extremely high quality covered bonds (v22930_m)Warning
- Other highly liquid financial instruments, used as assets referenced cannot be less than crypto assets (v22929_m)Warning
- Commodities cannot be less than the sum of seven rows (v22928_m)Warning
- Unadjusted reserve of assets must equal the sum of its 13 parts (v22927_m)Warning
- Reserve of assets must equal unadjusted reserve of assets plus adjustments (v89184_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.