The rule in plain words
Carrying amount of unencumbered assets issued by other entities of the group cannot be negative.
EBA checks it for eleven rows, from assets of the reporting institution (0010) to other assets (0120). That makes eleven 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.
Of which: issued by other entities of the group: Of which: covered bonds >= 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 F 32.01 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: encumbrance overview - assets (F 32.01)
Rows
- 0010Assets of the reporting institution
- 0020Loans on demand
- 0030Equity instruments
- 0040Debt securities
- 0050Of which: covered bonds
- 0060Of which: securitisations
- 0080Of which: issued by financial corporations
- 0090Of which: issued by non-financial corporations
- 0100Loans and advances other than loans on demand
- 0110Of which: loans collateralised with immovable property
- 0120Other assets
Column
- 0070Of which: issued by other entities of the group
A worked example
The first of its checks, with simple numbers.
Covered bonds, carrying amount of unencumbered assets issued by other entities of the group 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}.
{F_32.01,r0050,c0070,} >= 0The next five:
{F_32.01,r0010,c0070,} >= 0{F_32.01,r0110,c0070,} >= 0{F_32.01,r0040,c0070,} >= 0{F_32.01,r0060,c0070,} >= 0{F_32.01,r0090,c0070,} >= 0And 5 more, the same formula for the other cells it covers.
Other rules on F 32.01
- None of the 28 values it checks in asset encumbrance: encumbrance overview: assets can be negative (v4363_s)Warning
- Total unencumbered assets: the sum of two columns cannot be more than loans collateralised with immovable property, central bank's eligible (v2963_m)Blocking
- The sum of two columns cannot be more than loans collateralised with immovable property, carrying amount of unencumbered assets (v2962_m)Blocking
- Total encumbered assets: the sum of two columns cannot be more than loans collateralised with immovable property, central bank's eligible (v2961_m)Warning
- The sum of two columns cannot be more than loans collateralised with immovable property, carrying amount of encumbered assets (v2960_m)Warning
- Carrying amount of unencumbered assets: loans and advances other than loans on demand, central bank's eligible must equal the sum of its four parts (v2959_m)Blocking
- Loans and advances other than loans on demand, carrying amount of unencumbered assets must equal the sum of its four parts (v2958_m)Blocking
- Carrying amount of encumbered assets: loans and advances other than loans on demand, central bank's eligible must equal the sum of its four parts (v2957_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.