The rule in plain words
Net stable funding ratio (per cent) must be less than 6.
EBA checks it for four columns: actual current position, planned Year 1 Position, planned Year 2 Position and planned Year 3 Position. 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.
Planned Year 2 Position: Net Stable Funding Ratio (per cent) < 6
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value outside the limit in these cells.
- 03If the value is a percentage, EBA expects it as a decimal: 12% is reported as 0.12.
- 04EBA compares the values exactly here: there is no rounding tolerance.
- 05It runs only when your filing indicators mark P 01.03 as reported.
- 06This 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)
Row
- 010Net Stable Funding Ratio (per cent)
Columns
- 010Actual current position
- 030Planned Year 1 Position
- 040Planned Year 2 Position
- 050Planned Year 3 Position
A worked example
The first of its checks, with simple numbers.
Net stable funding ratio (per cent), planned Year 2 Position can then be anything less than 6.
A file that reports -94 passes. One that reports 6 fails.
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,c040,} < 6The next three:
{P_01.03,r010,c010,} < 6{P_01.03,r010,c050,} < 6{P_01.03,r010,c030,} < 6Other rules on P 01.03
- 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
- None of the 16 values it checks in liquidity ratios can be negative (v4395_s)Warning
- None of the six values it checks in liquidity ratios can be negative (v4394_s)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.