Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

None of the 24 values it checks in asset encumbrance can be negative (F 32.03.b, EBA rule v4369_s)

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

Check your file against this ruleWhat to do if it fails

The rule in plain words

None of the values it checks in asset encumbrance can be negative.

EBA checks it for four columns: fair value of debt securities issued available for encumbrance, central bank's eligible, notionally eligible EHQLA and HQLA, and nominal of own debt securities issued non available for encumbrance. And for six rows: own covered bonds and securitisations issued and not yet pledged, retained covered bonds issued, retained securitisations issued, senior, mezzanine, and first loss. That makes 24 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.

Fair value of debt securities issued available for encumbrance: Own covered bonds and securitisations issued and not yet pledged >= 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 (b) (F 32.03.b)

Rows

  • 0010Own covered bonds and securitisations issued and not yet pledged
  • 0020Retained covered bonds issued
  • 0030Retained securitisations issued
  • 0040Senior
  • 0050Mezzanine
  • 0060First Loss

Columns

  • 0020Fair value of debt securities issued available for encumbrance
  • 0030Of which: central bank's eligible
  • 0035Of which notionally eligible EHQLA and HQLA
  • 0040Nominal of own debt securities issued non available for encumbrance

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Own covered bonds and securitisations issued and not yet pledged, fair value of debt securities issued available for encumbrance 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.b,r0010,c0020,} >= 0

The next five:

{F_32.03.b,r0030,c0020,} >= 0{F_32.03.b,r0010,c0035,} >= 0{F_32.03.b,r0060,c0040,} >= 0{F_32.03.b,r0040,c0030,} >= 0{F_32.03.b,r0060,c0030,} >= 0

And 18 more, the same formula for the other cells it covers.

Every AE rule, by template

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