The rule in plain words
Applicable weight cannot be more than 1.
EBA checks it for twelve rows, from coins and banknotes (0040) to restricted-use central bank committed liquidity facilities (0400). That makes twelve 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.
Applicable weight: Credit institution (protected by Member State government, promotional lender) assets <= 1
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value outside the limit in these cells.
- 03If the value is a percentage, EBA expects it as a decimal: 12% is reported as 0.12.
- 04EBA compares the values exactly here: there is no rounding tolerance.
- 05It runs only when your filing indicators mark C 72.00 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
Liquidity coverage , liquid assets, total (DA) (C 72.00.a)
Rows
- 0040Coins and banknotes
- 0050Withdrawable central bank reserves
- 0060Central bank assets
- 0070Central government assets
- 0080Regional government / local authorities assets
- 0090Public Sector Entity assets
- 0100Recognisable domestic and foreign currency central government and central bank assets
- 0110Credit institution (protected by Member State government, promotional lender) assets
- 0120Multilateral development bank and international organisations assets
- 0130Qualifying CIU shares/units: underlying is coins/banknotes and/or central bank exposure
- 0150Alternative Liquidity Approaches: Central bank credit facility
- 0400Restricted-use central bank committed liquidity facilities
Column
- 0030Applicable weight
A worked example
The first of its checks, with simple numbers.
Credit institution (protected by Member State government, promotional lender) assets, applicable weight can then be at most 1.
A file that reports 1 passes. One that reports 1.1 fails, by 0.1.
The numbers are illustrative.
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_72.00.a,r0110,c0030,} <= 1The next five:
{C_72.00.a,r0050,c0030,} <= 1{C_72.00.a,r0060,c0030,} <= 1{C_72.00.a,r0120,c0030,} <= 1{C_72.00.a,r0130,c0030,} <= 1{C_72.00.a,r0080,c0030,} <= 1And 6 more, the same formula for the other cells it covers.
Other rules on C 72.00.a
- Total unadjusted level 2B assets must equal the sum of its 16 parts (row 0310, v7558_m)Warning
- Qualifying CIU shares or units: underlying is Level 1 assets excluding extremely high quality covered bonds, applicable weight cannot be more than 0.95 (v7560_m)Warning
- Total unadjusted level 2A assets must equal the sum of its seven parts (row 0230, v7557_m)Warning
- Applicable weight cannot be more than 0.8 (v7561_m)Warning
- Applicable weight cannot be more than 0.85 (v7562_m)Warning
- Total unadjusted level 1 extremely high quality covered bonds must equal the sum of its three parts (row 0180, v7555_m)Warning
- Applicable weight cannot be more than 0.75 (v7563_m)Warning
- Total unadjusted level 1 assets excluding extremely high quality covered bonds must equal the sum of its 14 parts (row 0030, v7554_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.