The rule in plain words
The value of exposures secured by mortgages of residential properties must be less than or equal to the total value of exposures secured by mortgages of immovable properties reported in this column.
In each of "Leverage Ratio Exposure Value: SA Exposures" (column 0010) and "RWEA: SA exposures" (column 0030) of (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA) (LV43.00.00.02): "of which: Secured by mortgages of residential properties" (row 0200) must not be more than "Secured by mortgages of immovable properties" (row 0190).
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03It runs only when your filing indicators mark LV43.00.00.02 as reported.
- 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
(LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA) (LV43.00.00.02)
Rows
- R0190Secured by mortgages of immovable properties
- R0200of which: Secured by mortgages of residential properties
Columns
- C0010Leverage Ratio Exposure Value: SA Exposures
- C0030RWEA: SA exposures
Which returns it applies to
Line4 Check runs it on the leverage ratio (LVR001) return on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to leverage ratio (LVR001) returns, as a blocking check.
The Bank’s own words and formula
The first paragraph of the plain words above is the Bank of England’s own, word for word, from its list of validations. The second spells out its formula, with each cell named from its templates.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: LV43.00.00.02, r: 0200} <= {t: LV43.00.00.02, r: 0190}Where it applies, in the Bank's words (its scope):
scope({t: LV43.00.00.02, c:0010;0030, f: banking, fv: leverage_ratio})Other rules on (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA) (LV43.00.00.02)
- (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA): a total must equal the sum of its parts (v0701_m)Blocking
- The value of retail SME exposures must be less than or equal to the total value of retail exposures reported in this column (v0703_m)Blocking
- (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA): a total must equal the sum of its parts (v0704_m)Blocking
- (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA): a total must equal the sum of its parts (v0705_m)Blocking
- (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA): a value must not be more than another (v0706_m)Blocking
- (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA): a value must not be more than another (v0707_m)Blocking
- The value of this exposure must be greater than or equal to zero (v3813_s)Blocking
- The total amount of exposures treated as sovereigns should be equal to the sum of the values in r0100, 0110, 0120 and 0130 of this column (v10245_h)
Every PRA banking rule on LV43.00.00.02
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.
