The rule in plain words
For additional outflows: applicable weight must be at least 0.25.
EBA checks it for two rows: internal netting of client´s positions and other Level 2B assets collateral. 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.
Applicable weight: internal netting of client´s positions >= 0.25
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
- 0450internal netting of client´s positions
- 1090other Level 2B assets collateral
Column
- 0050Applicable weight
A worked example
The first of its checks, with simple numbers.
Internal netting of client´s positions, applicable weight must then be at least 0.25.
A file that reports 0.25 passes. One that reports 0.15 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,r0450,c0050,} >= 0.25The next one:
{C_73.00.w,r1090,c0050,} >= 0.25Other rules on C 73.00.w
- Applicable weight must be at least 0.75 (v7629_m)Warning
- Applicable weight must be at least 0.2 (v7631_m)Warning
- If amount is zero or more, applicable weight cannot be negative (v7628_m)Warning
- To credit institutions: applicable weight must be at least 0.05 (v7632_m)Warning
- Category 2, applicable weight must be between 0.15 and 0.2 (v7627_m)Warning
- Category 1, applicable weight must be between 0.1 and 0.15 (v7626_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
- Applicable weight must be at least 0.3 (v7624_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.
