The rule in plain words
Secured by mortgages of residential properties cannot be more than secured by mortgages on immovable properties and ADC exposures.
EBA checks it for two columns, all for SA exposures: leverage ratio exposure value: and RWEAs:. That makes two 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.
Leverage Ratio Exposure Value: SA Exposures: Of which: secured by mortgages of residential properties <= Secured by mortgages on immovable properties and ADC exposures
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 43.00 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
Breakdown of leverage ratio exposure measure components: other non-trading book exposures (SA) (C 43.00.b)
Rows
- 0190Secured by mortgages on immovable properties and ADC exposures
- 0200Of which: secured by mortgages of residential properties
Columns
- 0010Leverage Ratio Exposure Value: SA Exposures
- 0030RWEAs: SA exposures
A worked example
The first of its checks, with simple numbers.
Secured by mortgages on immovable properties and ADC exposures must then be at least 1,200.
A file that reports 1,200 passes. One that reports 1,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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_43.00.b,r0200,c0010,} <= {C_43.00.b,r0190,c0010,}The next one:
{C_43.00.b,r0200,c0030,} <= {C_43.00.b,r0190,c0030,}Other rules on C 43.00.b
- Exposures to regional governments, MDB, international organisations and PSE not treated as sovereigns; must equal the sum of its three parts (v0701_m)Warning
- Retail SME cannot be more than retail exposures (v0703_m)Warning
- Corporate must equal financial plus non-financial (v0704_m)Warning
- Non-financial must equal SME exposures plus corporate exposures other than SME (v0705_m)Warning
- Securitisation exposures cannot be more than other exposures (v0706_m)Warning
- Under official export credit insurance scheme cannot be more than trade finance (Memo item) (v0707_m)Warning
- None of the 50 values it checks in breakdown of leverage ratio exposure measure components can be negative (v3813_s)Warning
- The absolute value of retail exposures cannot be less than the absolute value of retail SME (v5899_h)Blocking
Every COREP LR rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.