The rule in plain words
Debt securities issued by financial corporations cannot be more than total.
EBA checks it for nine rows, from central bank funding (of all types, including e.g. repos). encumbered assets (0010) to other sources of encumbrance. encumbered assets (0170). 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.
Debt securities issued other than covered bonds and securitisations. Encumbered assets, Of which: issued by financial corporations <= Debt securities issued other than covered bonds and securitisations. Encumbered assets, Total
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 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.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 36.01 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
Asset encumbrance: Advance template for assets of the reporting institution (a) (F 36.01.a)
Rows
- 0010Central bank funding (of all types, including e.g. repos). Encumbered assets
- 0030Exchange traded derivatives. Encumbered assets
- 0050Over-the-counter derivatives. Encumbered assets
- 0070Repurchase agreements. Encumbered assets
- 0090Collateralised deposits other than repurchase agreements. Encumbered assets
- 0110Covered bonds securities issued. Encumbered assets
- 0130Securitisations issued. Encumbered assets
- 0150Debt securities issued other than covered bonds and securitisations. Encumbered assets
- 0170Other sources of encumbrance. Encumbered assets
Columns
- 0030Total
- 0090Of which: issued by financial corporations
A worked example
The first of its checks, with simple numbers.
Total must then be at least 1,200.
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 writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_36.01.a,r0150,c0090,} <= {F_36.01.a,r0150,c0030,}The next five:
{F_36.01.a,r0050,c0090,} <= {F_36.01.a,r0050,c0030,}{F_36.01.a,r0130,c0090,} <= {F_36.01.a,r0130,c0030,}{F_36.01.a,r0010,c0090,} <= {F_36.01.a,r0010,c0030,}{F_36.01.a,r0070,c0090,} <= {F_36.01.a,r0070,c0030,}{F_36.01.a,r0030,c0090,} <= {F_36.01.a,r0030,c0030,}And 3 more, the same formula for the other cells it covers.
Other rules on F 36.01.a
- Debt securities issued by general governments cannot be more than total (v2903_m)Warning
- Debt securities issued by non financial corporations cannot be more than total (v2905_m)Warning
- Securitisations issued by other entities of the group cannot be more than securitisations (v2902_m)Warning
- Loans collateralised with immovable property cannot be more than non financial corporations (v2906_m)Warning
- Securitisations cannot be more than total (v2901_m)Warning
- Loans collateralised with immovable property cannot be more than households (v2907_m)Warning
- Covered bonds issued by other entities of the group cannot be more than covered bonds (v2900_m)Warning
- Total (column 0180) must equal the sum of its eight parts (v2908_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.