The rule in plain words
COMMON EQUITY TIER 1 CAPITAL is equal to CET1 capital ratio multiplied by c0030 if it is greater than c0010, otherwise c0010 (Total risk exposure amount) shall be used in the calculation in lieu of c0030
In Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01): "Common equity tier 1 capital" in column "Amount" (row 0020, column 0010) must equal "Total risk exposure amount" in column "All approaches" (row 0010, column 0010) in Own funds requirements for SDDTs (CA2 SDDT) (SC02.00.01.01) multiplied by "CET1 Capital ratio" in column "Amount" (row 0010, column 0010) in Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01).
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.
This is a blocking check. A return that fails it is normally rejected, so fix it before you submit. It runs only when your filing indicators mark SC01.00.01, SC02.00.01 and SC03.00.01 as reported.
The cells it reads
Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
Row
- R0020Common equity tier 1 capital
Column
- C0010Amount
Own funds requirements for SDDTs (CA2 SDDT) (SC02.00.01.01)
Row
- R0010Total risk exposure amount
Column
- C0010All approaches
Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01)
Row
- R0010CET1 Capital ratio
Column
- C0010Amount
Which returns it applies to
Line4 Check runs it on the own funds for SDDTs (PRA116) return on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to own funds for SDDTs (PRA116) 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: SC01.00.01.01, r: 0020, c: 0010} = {t: SC02.00.01.01, r: 0010, c: 0010} * {t: SC03.00.01.01, r: 0010, c: 0010}Other rules on Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
- Own funds for SDDTs (CA1 SDDT): this is the TIER1 Capital amount calculated by using as parameters c0010 or c0030 if it’s greater than c0010 (boe_b0024_ss)Blocking
- This is the Own Funds amount calculated by using as variable parameters c0010 or alternatively c0030 if c0030 is greater than c0010 (boe_b0026_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): "Common equity tier 1 capital" must equal the sum of 26 cells (boe_b0028_ss)
- Own funds for SDDTs (CA1 SDDT): "Additional tier 1 capital" must equal the sum of 7 cells (boe_b0029_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): "Tier 2 capital" must equal the sum of 8 cells (boe_b0030_ss)
- Own funds for SDDTs (CA1 SDDT): every value in 24 rows in column "Amount" must be zero or more (boe_b0031_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): value for mentioned rows should be lower than or equal to zero (boe_b0032_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): value adjustments check (boe_b1033_ss)
Every PRA banking rule on SC01.00.01.01
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.