Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Covered bonds cannot be more than debt securities (F 32.02.a, EBA rule v2828_m)

A warning in the asset encumbrance return (AE), on template F 32.02.a, asset encumbrance: encumbrance overview - collateral (a).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Covered bonds cannot be more than debt securities.

EBA checks it for nine columns, from fair value of encumbered collateral received or own debt securities issued (0010) to nominal of collateral received or own debt securities issued non available for encumbrance (0070). That makes nine checks. A failure names the one that failed.

How the Line4 Check report words itShow

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: central bank's eligible: Of which: covered bonds <= Debt securities

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark F 32.02 as reported.
  5. 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

Asset encumbrance: encumbrance overview - collateral (a) (F 32.02.a)

Rows

  • 0160Debt securities
  • 0170Of which: covered bonds

Columns

  • 0010Fair value of encumbered collateral received or own debt securities issued
  • 0020Of which: issued by other entities of the group
  • 0030Of which: central bank's eligible
  • 0035Of which notionally eligible EHQLA and HQLA
  • 0040Fair value of collateral received or own debt securities issued available for encumbrance
  • 0050Of which: issued by other entities of the group
  • 0060Of which: central bank's eligible
  • 0065Of which EHQLA and HQLA
  • 0070Nominal of collateral received or own debt securities issued non available for encumbrance

A worked example

The first of its checks, with simple numbers.

Illustrative values
covered bonds1,200
What the rule then expects

Debt securities must then be at least 1,200.

1,200Passes
1,100Fails

A file that reports 1,200 passes. One that reports 1,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_32.02.a,r0170,c0030,} <= {F_32.02.a,r0160,c0030,}

The next five:

{F_32.02.a,r0170,c0010,} <= {F_32.02.a,r0160,c0010,}{F_32.02.a,r0170,c0035,} <= {F_32.02.a,r0160,c0035,}{F_32.02.a,r0170,c0020,} <= {F_32.02.a,r0160,c0020,}{F_32.02.a,r0170,c0040,} <= {F_32.02.a,r0160,c0040,}{F_32.02.a,r0170,c0065,} <= {F_32.02.a,r0160,c0065,}

And 3 more, the same formula for the other cells it covers.

Every AE rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.