The rule in plain words
Total leverage ratio exposure measure - using a transitional definition of Tier 1 capital times leverage ratio - using a transitional definition of Tier 1 capital must equal tier 1 capital - transitional definition.
All the values are in the amount / ratio column (0010) of C 47.00.
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Total Leverage Ratio exposure measure - using a transitional definition of Tier 1 capital × Leverage Ratio - using a transitional definition of Tier 1 capital = Tier 1 capital - transitional definition
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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
- 0300Total Leverage Ratio exposure measure - using a transitional definition of Tier 1 capital
- 0320Tier 1 capital - transitional definition
- 0340Leverage Ratio - using a transitional definition of Tier 1 capital
Column
- 0010Amount / Ratio
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_47.00,r0300,c0010,} * {C_47.00,r0340,c0010,} = {C_47.00,r0320,c0010,}Other rules on C 47.00
- A calculation check on leverage ratio calculation (row 0290, v4459_m)Warning
- Total leverage ratio exposure measure, using a transitional definition of Tier 1 capital must equal the sum of its 66 parts (v4458_m)Warning
- Total leverage ratio exposure measure, using a fully phased-in definition of Tier 1 capital must equal the sum of its 66 parts (v4457_m)Warning
- The absolute value of exempted CCP leg of client-cleared SFT exposures cannot be more than the sum of four rows (v4464_m)Warning
- Derogation for derivatives: original exposure method cannot be less than the absolute value of exempted CCP leg of client-cleared trade exposures (original exposure method) (v4466_m)Warning
- Capped notional amount of written credit derivatives cannot be less than the absolute value of eligible purchased credit derivatives offset against written credit derivatives (v4467_m)Warning
- A lower-limit check on leverage ratio calculation (row 0091, v10087_m)Warning
- A lower-limit check on leverage ratio calculation (row 0091, v10088_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.