The rule in plain words
Carrying amount of selected financial liabilities must equal these three added up:
- Derivatives
- Deposits
- Debt securities issued
EBA checks it for two columns: matching liabilities, contingent liabilities or securities lent, and from other entities of the group. That makes two 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.
Matching liabilities, contingent liabilities or securities lent: Carrying amount of selected financial liabilities = Derivatives + Deposits + Debt securities issued
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 F 32.04 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
Asset encumbrance: sources of encumbrance (a) (F 32.04.a)
Rows
- 0010Carrying amount of selected financial liabilities
- 0020Derivatives
- 0040Deposits
- 0090Debt securities issued
Columns
- 0010Matching liabilities, contingent liabilities or securities lent
- 0020Of which: from other entities of the group
A worked example
The first of its checks, with simple numbers.
Carrying amount of selected financial liabilities must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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}.
{F_32.04.a,r0010,c0010,} = {F_32.04.a,r0020,c0010,} + {F_32.04.a,r0040,c0010,} + {F_32.04.a,r0090,c0010,}The next one:
{F_32.04.a,r0010,c0020,} = {F_32.04.a,r0020,c0020,} + {F_32.04.a,r0040,c0020,} + {F_32.04.a,r0090,c0020,}Other rules on F 32.04.a
- Deposits must equal the sum of its two parts (v2848_m)Warning
- Other sources of encumbrance must equal the sum of its four parts (v2850_m)Warning
- Securitisations issued cannot be more than debt securities issued (v2847_m)Warning
- Covered bonds issued cannot be more than debt securities issued (v2846_m)Warning
- Central banks cannot be more than collateralised deposits other than repurchase agreements (v2845_m)Warning
- Central banks cannot be more than repurchase agreements (v2844_m)Warning
- Over-the-Counter cannot be more than derivatives (v2843_m)Warning
- From other entities of the group cannot be more than matching liabilities, contingent liabilities or securities lent (v2842_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.