The rule in plain words
Total assets, collateral received and own debt securities issued cannot be negative.
EBA checks it for four columns: fair value of encumbered collateral received or own debt securities issued, issued by other entities of the group, central bank's eligible, and notionally eligible EHQLA and HQLA. That makes four 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 encumbered collateral received or own debt securities issued: TOTAL ASSETS, COLLATERAL RECEIVED AND OWN DEBT SECURITIES ISSUED >= 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 (b) (F 32.02.b)
Row
- 0250TOTAL ASSETS, COLLATERAL RECEIVED AND OWN DEBT SECURITIES ISSUED
Columns
- 0010Fair value of encumbered collateral received or own debt securities issued
- 0020Of which: issued by other entities of the group
- 0030Of which: central bank's eligible
- 0035Of which notionally eligible EHQLA and HQLA
A worked example
The first of its checks, with simple numbers.
Total assets, collateral received and own debt securities issued, fair value of encumbered collateral received or own debt securities issued 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.b,r0250,c0010,} >= 0The next three:
{F_32.02.b,r0250,c0030,} >= 0{F_32.02.b,r0250,c0020,} >= 0{F_32.02.b,r0250,c0035,} >= 0Other rules on F 32.02.b
- Central bank's eligible cannot be more than fair value of encumbered collateral received or own debt securities issued (v2837_m)Warning
- Issued by other entities of the group cannot be more than fair value of encumbered collateral received or own debt securities issued (v2836_m)Warning
- Notionally eligible EHQLA and HQLA cannot be more than fair value of encumbered collateral received or own debt securities issued (v10065_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.