Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Carrying amount of the underlying pool of assets cannot be negative (EBA rule v4368_s)

A warning in the asset encumbrance return (AE), on template F 32.03.a, asset encumbrance: not pledged, own covered bonds and ABS issued and not yet pledged (a).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Carrying amount of the underlying pool of assets cannot be negative.

EBA checks it for three rows: own covered bonds and securitisations issued and not yet pledged, retained covered bonds issued, and retained securitisations issued. That makes three checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Carrying amount of the underlying pool of assets: Retained securitisations issued >= 0

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
  3. 03EBA compares the values exactly here: there is no rounding tolerance.
  4. 04It runs only when your filing indicators mark F 32.03 as reported.
  5. 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: not pledged, own covered bonds and ABS issued and not yet pledged (a) (F 32.03.a)

Rows

  • 0010Own covered bonds and securitisations issued and not yet pledged
  • 0020Retained covered bonds issued
  • 0030Retained securitisations issued

Column

  • 0010Carrying amount of the underlying pool of assets

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Retained securitisations issued, carrying amount of the underlying pool of assets must then be at least 0.

0Passes
-100Fails

A file that reports 0 passes. One that reports -100 fails, by 100.

The numbers are illustrative.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_32.03.a,r0030,c0010,} >= 0

The next two:

{F_32.03.a,r0020,c0010,} >= 0{F_32.03.a,r0010,c0010,} >= 0

Every AE rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.