The rule in plain words
Non-financial must equal SME exposures plus corporate exposures other than SME.
EBA checks it for two columns, all for IRB 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: IRB Exposures: Non-financial = SME exposures + Corporate exposures other than SME
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C 43.00 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
Breakdown of leverage ratio exposure measure components: other non-trading book exposures (IRB) (C 43.00.c)
Rows
- 0250Non-financial
- 0260SME exposures
- 0270Corporate exposures other than SME
Columns
- 0020Leverage Ratio Exposure Value: IRB Exposures
- 0040RWEAs: IRB exposures
A worked example
The first of its checks, with simple numbers.
Non-financial must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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.c,r0250,c0020,} = {C_43.00.c,r0260,c0020,} + {C_43.00.c,r0270,c0020,}The next one:
{C_43.00.c,r0250,c0040,} = {C_43.00.c,r0260,c0040,} + {C_43.00.c,r0270,c0040,}Other rules on C 43.00.c
- Corporate must equal financial plus non-financial (v0716_m)Warning
- Securitisation exposures cannot be more than other exposures (v0718_m)Warning
- Retail SME cannot be more than retail exposures (v0715_m)Warning
- Under official export credit insurance scheme cannot be more than trade finance (Memo item) (v0719_m)Warning
- Secured by mortgages of residential properties cannot be more than secured by mortgages on immovable properties and ADC exposures (v0714_m)Warning
- Exposures to regional governments, MDB, international organisations and PSE not treated as sovereigns; must equal the sum of its three parts (v0713_m)Warning
- None of the 50 values it checks in breakdown of leverage ratio exposure measure components can be negative (v3814_s)Warning
- The absolute value of retail exposures cannot be less than the absolute value of retail SME (v5900_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.