The rule in plain words
Additional amount of encumbered assets cannot be negative.
EBA checks it for 13 rows, from carrying amount of selected financial liabilities (0010) to total sources of encumbrance (0170). That makes 13 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.
Additional amount of encumbered assets: Of which: Over-The-Counter >= 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 34.00 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: contingent encumbrance (b) (F 34.00.b)
Rows
- 0010Carrying amount of selected financial liabilities
- 0020Derivatives
- 0030Of which: Over-The-Counter
- 0040Deposits
- 0050Repurchase agreements
- 0060Of which: central banks
- 0070Collateralised deposits other than repurchase agreements
- 0080Of which: central banks
- 0090Debt securities issued
- 0100Of which: covered bonds issued
- 0110Of which: securitisations issued
- 0120Other sources of encumbrance
- 0170TOTAL SOURCES OF ENCUMBRANCE
Column
- 0020Additional amount of encumbered assets
A worked example
The first of its checks, with simple numbers.
Over-the-Counter, additional amount of encumbered 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_34.00.b,r0030,c0020,} >= 0The next five:
{F_34.00.b,r0120,c0020,} >= 0{F_34.00.b,r0090,c0020,} >= 0{F_34.00.b,r0170,c0020,} >= 0{F_34.00.b,r0060,c0020,} >= 0{F_34.00.b,r0070,c0020,} >= 0And 7 more, the same formula for the other cells it covers.
Other rules on F 34.00.b
- Carrying amount of selected financial liabilities must equal the sum of its three parts (v2887_m)Warning
- Deposits must equal the sum of its two parts (v2886_m)Warning
- Securitisations issued cannot be more than debt securities issued (v2885_m)Warning
- Covered bonds issued cannot be more than debt securities issued (v2884_m)Warning
- Central banks cannot be more than collateralised deposits other than repurchase agreements (v2883_m)Warning
- Central banks cannot be more than repurchase agreements (v2882_m)Warning
- Over-the-Counter cannot be more than derivatives (v2881_m)Warning
- Total sources of encumbrance must equal the sum of its two parts (v23833_h)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.