The rule in plain words
OLRR and P2G: to be made up of Tier 1 capital cannot be more than overall leverage ratio requirement (OLRR) and Pillar to guidance (P2G) ratio.
All the values are in the amount / ratio column (0010) of C 47.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
OLRR and P2G: to be made up of Tier 1 capital <= Overall leverage ratio requirement (OLRR) and Pillar to Guidance (P2G) ratio
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 47.00 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
Leverage ratio calculation (C 47.00)
Rows
- 0450Overall leverage ratio requirement (OLRR) and Pillar to Guidance (P2G) ratio
- 0470OLRR and P2G: to be made up of Tier 1 capital
Column
- 0010Amount / Ratio
A worked example
The first of its checks, with simple numbers.
Overall leverage ratio requirement (OLRR) and Pillar to guidance (P2G) ratio 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. Cells are written as {template, row, column, sheet}.
{C_47.00,r0470,c0010,} <= {C_47.00,r0450,c0010,}Other rules on C 47.00
- OLRR and P2G: to be made up of CET1 capital cannot be more than overall leverage ratio requirement (OLRR) and Pillar to guidance (P2G) ratio (v10642_m)Warning
- Overall leverage ratio requirement (OLRR) cannot be more than overall leverage ratio requirement (OLRR) and Pillar to guidance (P2G) ratio (v10644_m)Warning
- TSLRR: to be made up of CET1 capital cannot be more than total SREP leverage ratio requirement (TSLRR) (v10645_m)Warning
- To be made up of Tier 1 capital cannot be more than pillar 2 guidance (P2G) to address risks of excessive leverage (v10646_m)Warning
- To be made up of CET1 capital cannot be more than pillar 2 guidance (P2G) to address risks of excessive leverage (v10647_m)Warning
- To be made up of CET1 capital cannot be more than pillar 2 requirement (P2R) to address risks of excessive leverage (v10648_m)Warning
- A lower-limit check on leverage ratio calculation (row 0103, v10090_m)Warning
- A lower-limit check on leverage ratio calculation (row 0101, v10089_m)Warning
Every COREP LR rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.