The rule in plain words
Qualifying CIU shares or units: underlying is Level 1 assets excluding extremely high quality covered bonds, applicable weight cannot be more than 0.95.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Applicable weight: Qualifying CIU shares/units: underlying is Level 1 assets excluding extremely high quality covered bonds <= 0.95
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, significant currencies (DA) (C 72.00.w)
Row
- 0140Qualifying CIU shares/units: underlying is Level 1 assets excluding extremely high quality covered bonds
Column
- 0030Applicable weight
A worked example
The first of its checks, with simple numbers.
Qualifying CIU shares or units: underlying is Level 1 assets excluding extremely high quality covered bonds, applicable weight can then be at most 0.95.
A file that reports 0.95 passes. One that reports 1.05 fails, by 0.1.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_72.00.w,r0140,c0030,} <= 0.95Other rules on C 72.00.w
- Applicable weight cannot be more than 1 (v7604_m)Warning
- Applicable weight cannot be more than 0.8 (v7606_m)Warning
- Total unadjusted level 2B assets must equal the sum of its 16 parts (row 0310, v7603_m)Warning
- Applicable weight cannot be more than 0.85 (v7607_m)Warning
- Total unadjusted level 2A assets must equal the sum of its seven parts (row 0230, v7602_m)Warning
- Applicable weight cannot be more than 0.75 (v7608_m)Warning
- Extremely high quality covered bonds, applicable weight cannot be more than 0.93 (v7609_m)Warning
- Total unadjusted level 1 extremely high quality covered bonds must equal the sum of its three parts (row 0180, v7600_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.