The rule in plain words
To calculate Surplus(+)/Deficit(-) of total capital in table SC03.00, the parameters shall be c0010 or c0030, when c0030 is greater than c0010
In Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01): "Surplus(+)/Deficit(-) of total capital" in column "Amount" (row 0060, column 0010) must equal "Own funds" in column "Amount" (row 0010, column 0010) in Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01) minus "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 0.08.
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
- R0010Own funds
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
- R0060Surplus(+)/Deficit(-) of total capital
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: SC03.00.01.01, r: 0060, c: 0010} = {t: SC01.00.01.01, r: 0010, c: 0010} - ({t: SC02.00.01.01, r: 0010, c: 0010} * 0.08)Other rules on Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01)
- This is the amount of Surplus(+)/Deficit(-) of T1 capital, calculated using as parameters c0010 or c0030 if it’s greater than c0010 (boe_b0025_ss)Blocking
- This represents the Surplus(+)/Deficit(-) of CET1 capital amount, calculated using as parameters c0010 or c0030 if it’s greater than c0010 (boe_b0023_ss)Blocking
- SDDTs aren’t subject to CRDIV buffers so these rows should be the same (Total capital) (boe_b0113_ss)Blocking
- SDDTs aren’t subject to CRDIV buffers so these rows should be the same (CET1) (boe_b0114_ss)Blocking
- SDDTs aren’t subject to CRDIV buffers so these rows should be the same (Tier 1) (boe_b0115_ss)Blocking
Every PRA banking rule on SC03.00.01.01
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.