The rule in plain words
Liquidity value of collateral lent cannot be negative.
EBA checks it for 116 rows, from collateral swapped meets operational requirements (0040) to collateral lent is L2B (2820). That makes 116 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.
Liquidity value of collateral lent: Of which collateral swapped meets operational requirements >= 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 C 75.01 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 coverage, collateral swaps, significant currencies (DA) (C 75.01.w)
Rows
- 0040Of which collateral swapped meets operational requirements
- 0060Of which collateral swapped meets operational requirements
- 0080Of which collateral swapped meets operational requirements
- 0100Of which collateral swapped meets operational requirements
- 0120Of which collateral swapped meets operational requirements
- 0140Of which collateral swapped meets operational requirements
- 0160Of which collateral swapped meets operational requirements
- 0180Of which collateral swapped meets operational requirements
- 0210Of which collateral swapped meets operational requirements
- 0230Of which collateral swapped meets operational requirements
- 0250Of which collateral swapped meets operational requirements
- 0270Of which collateral swapped meets operational requirements
- 0290Of which collateral swapped meets operational requirements
- 0310Of which collateral swapped meets operational requirements
- 0330Of which collateral swapped meets operational requirements
- 0350Of which collateral swapped meets operational requirements
- 0380Of which collateral swapped meets operational requirements
- 0400Of which collateral swapped meets operational requirements
- 0420Of which collateral swapped meets operational requirements
- 0440Of which collateral swapped meets operational requirements
- 0460Of which collateral swapped meets operational requirements
- 0480Of which collateral swapped meets operational requirements
- 0500Of which collateral swapped meets operational requirements
- 0520Of which collateral swapped meets operational requirements
- 0550Of which collateral swapped meets operational requirements
- 0570Of which collateral swapped meets operational requirements
- 0590Of which collateral swapped meets operational requirements
- 0610Of which collateral swapped meets operational requirements
- 0630Of which collateral swapped meets operational requirements
- 0650Of which collateral swapped meets operational requirements
- 0670Of which collateral swapped meets operational requirements
- 0690Of which collateral swapped meets operational requirements
- 0720Of which collateral swapped meets operational requirements
- 0740Of which collateral swapped meets operational requirements
- 0760Of which collateral swapped meets operational requirements
- 0780Of which collateral swapped meets operational requirements
- 0800Of which collateral swapped meets operational requirements
- 0820Of which collateral swapped meets operational requirements
- 0840Of which collateral swapped meets operational requirements
- 0860Of which collateral swapped meets operational requirements
And 76 more.
Column
- 0020Liquidity value of collateral lent
A worked example
The first of its checks, with simple numbers.
Collateral swapped meets operational requirements, liquidity value of collateral lent 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}.
{C_75.01.w,r1060,c0020,} >= 0The next five:
{C_75.01.w,r1420,c0020,} >= 0{C_75.01.w,r1880,c0020,} >= 0{C_75.01.w,r1990,c0020,} >= 0{C_75.01.w,r1200,c0020,} >= 0{C_75.01.w,r0570,c0020,} >= 0And 110 more, the same formula for the other cells it covers.
Other rules on C 75.01.w
- Applicable weight cannot be negative (v7694_s)Warning
- Liquidity value of collateral borrowed cannot be negative (v7696_s)Warning
- Outflows cannot be negative (v7693_s)Warning
- None of the 261 values it checks in liquidity coverage can be negative (v7692_s)Warning
- None of the 548 values it checks in liquidity coverage can be negative (v7773_s)Warning
- Total collateral swaps (counterparty is non-central bank): totals for transactions in which non-liquid assets are lent and the following collateral is borrowed must equal the sum of its eight parts (v7470_m)Warning
- Total collateral swaps (counterparty is central bank): totals for transactions in which non-liquid assets are lent and the following collateral is borrowed must equal the sum of its eight parts (v7469_m)Warning
- Total collateral swaps (counterparty is non-central bank): totals for transactions in which other Level 2B assets are lent and the following collateral is borrowed must equal the sum of its eight parts (v7468_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.