The rule in plain words
None of the values it checks in asset encumbrance: encumbrance overview: assets can be negative.
EBA checks it for four columns: fair value of encumbered assets, central bank's eligible (0050), fair value of unencumbered assets and central bank's eligible (0100). And for seven rows: equity instruments, debt securities, covered bonds, securitisations, debt securities issued by general governments, debt securities issued by financial corporations and debt securities issued by non-financial corporations. That makes 28 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.
Fair value of unencumbered assets: Of which: issued by general governments >= 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
- 0030Equity instruments
- 0040Debt securities
- 0050Of which: covered bonds
- 0060Of which: securitisations
- 0070Of which: issued by general governments
- 0080Of which: issued by financial corporations
- 0090Of which: issued by non-financial corporations
Columns
- 0040Fair value of encumbered assets
- 0050Of which: central bank's eligible
- 0090Fair value of unencumbered assets
- 0100Of which: central bank's eligible
A worked example
The first of its checks, with simple numbers.
Debt securities issued by general governments, fair value of unencumbered assets 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,r0070,c0090,} >= 0The next five:
{F_32.01,r0040,c0050,} >= 0{F_32.01,r0080,c0100,} >= 0{F_32.01,r0060,c0040,} >= 0{F_32.01,r0030,c0050,} >= 0{F_32.01,r0060,c0100,} >= 0And 22 more, the same formula for the other cells it covers.
Other rules on F 32.01
- Carrying amount of unencumbered assets issued by other entities of the group cannot be negative (v4362_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.