The rule in plain words
None of the values it checks in liquidity ratios can be negative.
EBA checks it for two columns: actual current position and planned Year 1 Position. And for eight rows: net stable funding ratio (per cent), available stable funding, required stable funding, liquidity coverage ratio (per cent), liquidity buffer, net liquidity outflow, total outflows and total redemption for inflows. That makes 16 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.
Actual current position: Net Stable Funding Ratio (per cent) >= 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 P 01.03 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
Liquidity ratios (P 01.03)
Rows
- 010Net Stable Funding Ratio (per cent)
- 012Available stable funding
- 014Required stable funding
- 030Liquidity Coverage Ratio (per cent)
- 032Liquidity buffer
- 034Net liquidity outflow
- 035Total outflows
- 036Total redemption for inflows
Columns
- 010Actual current position
- 030Planned Year 1 Position
A worked example
The first of its checks, with simple numbers.
Net stable funding ratio (per cent), actual current position 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}.
{P_01.03,r010,c010,} >= 0The next five:
{P_01.03,r010,c030,} >= 0{P_01.03,r032,c010,} >= 0{P_01.03,r014,c030,} >= 0{P_01.03,r035,c010,} >= 0{P_01.03,r012,c010,} >= 0And 10 more, the same formula for the other cells it covers.
Other rules on P 01.03
- None of the six values it checks in liquidity ratios can be negative (v4394_s)Warning
- Net stable funding ratio (per cent) must be less than 6 (v6212_m)Warning
- Liquidity coverage ratio (per cent) must be more than 1 (v6213_m)Warning
- Each of the eight cells it checks in liquidity ratios must be reported (v6214_m)Warning
- Each of the 20 cells it checks in liquidity ratios must be reported (v6215_m)Warning
- If actual current position is not zero, planned Year 1 Position cannot be zero, and planned Year 2 Position cannot be zero, and planned Year 3 Position cannot be zero (v6231_m)Warning
- Liquidity coverage ratio (per cent) must be less than 6 (v09244_m)Warning
- If actual current position is not zero, planned Year 1 Position cannot be zero (v09245_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.