The rule in plain words
None of the values it checks in asset encumbrance can be negative.
EBA checks it for two columns: issued by other entities of the group (0020) and issued by other entities of the group (0050). And for ten rows, from collateral received by the reporting institution (0130) to other collateral received (0230). That makes 20 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: Debt securities >= 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 32.02 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 - collateral (a) (F 32.02.a)
Rows
- 0130Collateral received by the reporting institution
- 0140Loans on demand
- 0150Equity instruments
- 0160Debt securities
- 0170Of which: covered bonds
- 0180Of which: securitisations
- 0200Of which: issued by financial corporations
- 0210Of which: issued by non-financial corporations
- 0220Loans and advances other than loans on demand
- 0230Other collateral received
Columns
- 0020Of which: issued by other entities of the group
- 0050Of which: issued by other entities of the group
A worked example
The first of its checks, with simple numbers.
Debt securities, 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_32.02.a,r0160,c0050,} >= 0The next five:
{F_32.02.a,r0170,c0050,} >= 0{F_32.02.a,r0200,c0050,} >= 0{F_32.02.a,r0230,c0020,} >= 0{F_32.02.a,r0210,c0020,} >= 0{F_32.02.a,r0180,c0050,} >= 0And 14 more, the same formula for the other cells it covers.
Other rules on F 32.02.a
- None of the 60 values it checks in asset encumbrance can be negative (v4366_s)Warning
- Total unencumbered collateral received: central bank eligible, total must equal the sum of its two parts (v3017_m)Warning
- Total unencumbered collateral received, total must equal the sum of its four parts (v3016_m)Warning
- Total encumbered collateral received: central bank eligible, total must equal the sum of its two parts (v3015_m)Warning
- Total encumbered collateral received, total must equal the sum of its two parts (v3014_m)Warning
- Total unencumbered collateral received, own debt securities issued other than own covered bonds or securitisations must equal the sum of its two parts (v3013_m)Warning
- Total unencumbered collateral received, other collateral received must equal the sum of its two parts (v3012_m)Warning
- Fair value of collateral received or own debt securities issued available for encumbrance: loans and advances other than loans on demand, central bank's eligible must equal the sum of its four parts (v3011_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.