The rule in plain words
Applicable weight must be at least 0.1.
EBA checks it for five rows: other retail deposits, level 1 EHQ covered bonds assets collateral posted for derivatives, to non-financial customers other than retail customers, for funding promotional loans of non-financial customers and to purchase assets other than securities from non-financial customers. That makes five 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: to purchase assets other than securities from non-financial customers >= 0.1
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 73.00 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, outflows, significant currencies (DA) (C 73.00.w)
Rows
- 0110other retail deposits
- 0290Level 1 EHQ Covered Bonds assets collateral posted for derivatives
- 0490to non-financial customers other than retail customers
- 0520for funding promotional loans of non-financial customers
- 0630to purchase assets other than securities from non-financial customers
Column
- 0050Applicable weight
A worked example
The first of its checks, with simple numbers.
To purchase assets other than securities from non-financial customers, applicable weight must then be at least 0.1.
A file that reports 0.1 passes. One that reports 0 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_73.00.w,r0630,c0050,} >= 0.1The next four:
{C_73.00.w,r0290,c0050,} >= 0.1{C_73.00.w,r0490,c0050,} >= 0.1{C_73.00.w,r0110,c0050,} >= 0.1{C_73.00.w,r0520,c0050,} >= 0.1Other rules on C 73.00.w
- Counterparty is non-central bank: applicable weight must be at least 0.25 (v7621_m)Warning
- A conditional check on liquidity coverage (v7623_m)Warning
- Applicable weight must be at least 0.4 (v7620_m)Warning
- Applicable weight must be at least 0.3 (v7624_m)Warning
- Operational deposits maintained for clearing, custody, cash management or other comparable services in the context of an established operational relationship: applicable weight must be at least 0.05 (v7619_m)Warning
- Level 2B asset-backed securities (commercial or individuals, Member State, CQS1) collateral, applicable weight must be at least 0.35 (v7625_m)Warning
- Operational deposits maintained for clearing, custody, cash management or other comparable services in the context of an established operational relationship must equal the sum of its four parts (v7618_m)Warning
- Category 1, applicable weight must be between 0.1 and 0.15 (v7626_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.