Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Counterparty is non-central bank: collateral that qualifies as a liquid asset must equal the sum of its seven parts (C 74.00.a, EBA rule v7399_m)

A warning in the liquidity coverage ratio return (LCR), on template C 74.00.a, liquidity coverage, inflows, total (DA).

Check your file against this ruleWhat to do if it fails

The rule in plain words

For counterparty is non-central bank: collateral that qualifies as a liquid asset must equal these seven added up:

  • Level 1 collateral excluding extremely high quality covered bonds
  • Level 1 collateral which is extremely high quality covered bonds
  • Level 2A collateral
  • Level 2B asset backed securities (residential or auto) collateral
  • Level 2B high quality covered bonds collateral
  • Level 2B asset backed securities (commercial or individuals) collateral
  • Level 2B collateral not already captured in section 1.2.2.4, 1.2.2.5 or 1.2.2.6

EBA checks it for nine columns, from subject to the 75% cap on inflows (0010) to exempted from the cap on inflows (0160). That makes nine 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.

Subject to the 90% cap on inflows: collateral that qualifies as a liquid asset = Level 1 collateral excluding extremely high quality covered bonds + Level 1 collateral which is extremely high quality covered bonds + Level 2A collateral + Level 2B asset backed securities (residential or auto) collateral + Level 2B high quality covered bonds collateral + Level 2B asset backed securities (commercial or individuals) collateral + Level 2B collateral not already captured in section 1.2.2.4, 1.2.2.5 or 1.2.2.6

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark C 74.00 as reported.
  6. 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 coverage, inflows, total (DA) (C 74.00.a)

Rows

  • 0307collateral that qualifies as a liquid asset
  • 0309Level 1 collateral excluding extremely high quality covered bonds
  • 0313Level 1 collateral which is extremely high quality covered bonds
  • 0317Level 2A collateral
  • 0321Level 2B asset backed securities (residential or auto) collateral
  • 0325Level 2B high quality covered bonds collateral
  • 0329Level 2B asset backed securities (commercial or individuals) collateral
  • 0333Level 2B collateral not already captured in section 1.2.2.4, 1.2.2.5 or 1.2.2.6

Columns

  • 0010Subject to the 75% cap on inflows
  • 0020Subject to the 90% cap on inflows
  • 0030Exempted from the cap on inflows
  • 0040Subject to the 75% cap on inflows
  • 0050Subject to the 90% cap on inflows
  • 0060Exempted from the cap on inflows
  • 0140Subject to the 75% cap on inflows
  • 0150Subject to the 90% cap on inflows
  • 0160Exempted from the cap on inflows

A worked example

The first of its checks, with simple numbers.

Illustrative values
Level 1 collateral excluding extremely high quality covered bonds1,200
Level 1 collateral which is extremely high quality covered bonds800
Level 2A collateral450
Level 2B asset backed securities (residential or auto) collateral300
Level 2B high quality covered bonds collateral150
Level 2B asset backed securities (commercial or individuals) collateral100
Level 2B collateral not already captured in section 1.2.2.4, 1.2.2.5 or 1.2.2.660
Together3,060
What the rule then expects

Collateral that qualifies as a liquid asset must then be 3,060.

3,060Passes
3,160Fails

A file that reports 3,060 passes. One that reports 3,160 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

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}.

{C_74.00.a,r0307,c0020,} = {C_74.00.a,r0309,c0020,} + {C_74.00.a,r0313,c0020,} + {C_74.00.a,r0317,c0020,} + {C_74.00.a,r0321,c0020,} + {C_74.00.a,r0325,c0020,} + {C_74.00.a,r0329,c0020,} + {C_74.00.a,r0333,c0020,}

The next five:

{C_74.00.a,r0307,c0160,} = {C_74.00.a,r0309,c0160,} + {C_74.00.a,r0313,c0160,} + {C_74.00.a,r0317,c0160,} + {C_74.00.a,r0321,c0160,} + {C_74.00.a,r0325,c0160,} + {C_74.00.a,r0329,c0160,} + {C_74.00.a,r0333,c0160,}{C_74.00.a,r0307,c0010,} = {C_74.00.a,r0309,c0010,} + {C_74.00.a,r0313,c0010,} + {C_74.00.a,r0317,c0010,} + {C_74.00.a,r0321,c0010,} + {C_74.00.a,r0325,c0010,} + {C_74.00.a,r0329,c0010,} + {C_74.00.a,r0333,c0010,}{C_74.00.a,r0307,c0150,} = {C_74.00.a,r0309,c0150,} + {C_74.00.a,r0313,c0150,} + {C_74.00.a,r0317,c0150,} + {C_74.00.a,r0321,c0150,} + {C_74.00.a,r0325,c0150,} + {C_74.00.a,r0329,c0150,} + {C_74.00.a,r0333,c0150,}{C_74.00.a,r0307,c0030,} = {C_74.00.a,r0309,c0030,} + {C_74.00.a,r0313,c0030,} + {C_74.00.a,r0317,c0030,} + {C_74.00.a,r0321,c0030,} + {C_74.00.a,r0325,c0030,} + {C_74.00.a,r0329,c0030,} + {C_74.00.a,r0333,c0030,}{C_74.00.a,r0307,c0050,} = {C_74.00.a,r0309,c0050,} + {C_74.00.a,r0313,c0050,} + {C_74.00.a,r0317,c0050,} + {C_74.00.a,r0321,c0050,} + {C_74.00.a,r0325,c0050,} + {C_74.00.a,r0329,c0050,} + {C_74.00.a,r0333,c0050,}

And 3 more, the same formula for the other cells it covers.

Every LCR rule, by template

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