The rule in plain words
The value of this exposure must be greater than or equal to zero.
In (LR4) Alternative breakdown of leverage ratio exposure measure components: Other non-trading book exposures (SA) (LV43.00.00.02): every value in 25 rows (listed below) in "Leverage Ratio Exposure Value: SA Exposures" (column 0010) and "RWEA: SA exposures" (column 0030) must be zero or more.
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 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
- R0080Covered bonds
- R0090Exposures treated as sovereigns
- R0100Central governments and central banks
- R0110Regional governments and local authorities treated as sovereigns
- R0120MDBs and international organisations treated as sovereigns
- R0130PSEs treated as sovereigns
- R0140Exposures to regional governments, MDBs, international organisations and PSEs NOT treated as sovereigns
- R0150Regional governments and local authorities NOT treated as sovereigns
- R0160MDBs NOT treated as sovereigns
- R0170PSEs NOT treated as a sovereigns
- R0180Institutions
- R0190Secured by mortgages of immovable properties
- R0200of which: Secured by mortgages of residential properties
- R0210Retail Exposures
- R0220of which: Retail SME
- R0230Corporate
- R0240Financial
- R0250Non-financial
- R0260SME exposures
- R0270Exposures other than SME exposures
- R0280Exposures in default
- R0290Other exposures
- R0300of which: Securitisation exposures
- R0310Trade finance (memo item)
- R0320of which: Under official export credit insurance scheme
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: 0080; 0090; 0100; 0110; 0120; 0130; 0140; 0150; 0160; 0170; 0180; 0190; 0200; 0210; 0220; 0230; 0240; 0250; 0260; 0270; 0280; 0290; 0300; 0310; 0320, c: 0010; 0030} >= 0Other 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 value must not be more than another (v0707_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 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 total must equal the sum of its parts (v0704_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 value must not be more than another (v0702_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 (v0701_m)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.
