The rule in plain words
This value of this exposure must be greater than or equal to zero.
In On- and off-balance sheet items - additional breakdown of exposures (LR2) (LV41.00.00.01): "Low risk off-balance sheet items and off-balance sheet items attracting a 0% conversion factor under the solvency ratio (memo item)" in column "Nominal value" (row 0110, column 0030) must not be negative.
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Look for a value below zero in these cells, such as an amount entered as a negative number.
- 03It runs only when your filing indicators mark LV41.00.00 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
On- and off-balance sheet items - additional breakdown of exposures (LR2) (LV41.00.00.01)
Row
- R0110Low risk off-balance sheet items and off-balance sheet items attracting a 0% conversion factor under the solvency ratio (memo item)
Column
- C0030Nominal value
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: LV41.00.00.01, r: 0110, c: 0030} >= 0Other rules on On- and off-balance sheet items - additional breakdown of exposures (LR2) (LV41.00.00.01)
Every PRA banking rule on LV41.00.00.01
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.