The rule in plain words
The absolute value of retail exposures cannot be less than the absolute value of retail SME.
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.
RWEAs: SA exposures: the absolute value of Retail Exposures >= the absolute value of Of which: retail SME
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 smaller 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 blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Breakdown of leverage ratio exposure measure components: other non-trading book exposures (SA) (C 43.00.b)
Rows
- 0210Retail Exposures
- 0220Of which: retail SME
Columns
- 0010Leverage Ratio Exposure Value: SA Exposures
- 0030RWEAs: SA exposures
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}.
abs({C_43.00.b,r0210,c0030,}) >= abs({C_43.00.b,r0220,c0030,})The next one:
abs({C_43.00.b,r0210,c0010,}) >= abs({C_43.00.b,r0220,c0010,})Other rules on C 43.00.b
- None of the 50 values it checks in breakdown of leverage ratio exposure measure components can be negative (v3813_s)Warning
- Exposures treated as sovereigns must equal the sum of its four parts (v8829_m)Warning
- Under official export credit insurance scheme cannot be more than trade finance (Memo item) (v0707_m)Warning
- Securitisation exposures cannot be more than other exposures (v0706_m)Warning
- Non-financial must equal SME exposures plus corporate exposures other than SME (v0705_m)Warning
- Corporate must equal financial plus non-financial (v0704_m)Warning
- Retail SME cannot be more than retail exposures (v0703_m)Warning
- Secured by mortgages of residential properties cannot be more than secured by mortgages on immovable properties and ADC exposures (v0702_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.