The rule in plain words
In column "Amount" (0010) of Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01): "Common equity tier 1 capital" (row 0020) must equal the sum of 26 cells (listed below).
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark SC01.00.01 as reported.
- 06This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.
The cells it reads
Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
Rows
- R0020Common equity tier 1 capital
- R0030Capital instruments eligible as CET1 Capital
- R0130Retained earnings
- R0180Accumulated other comprehensive income
- R0200Other reserves
- R0210Funds for general banking risk
- R0230Minority interest given recognition in CET1 capital
- R0250Adjustments to CET1 due to prudential filters
- R0300(-) Goodwill
- R0340(-) Other intangible assets
- R0370(-) Deferred tax assets that rely on future profitability and do not arise from temporary differences net of associated tax liabilities
- R0390(-)Defined benefit pension fund assets
- R0430(-) Reciprocal cross holdings in CET1 Capital
- R0440(-) Excess of deduction from AT1 items over AT1 Capital
- R0450(-) Qualifying holdings outside the financial sector
- R0460(-) Securitisation positions
- R0470(-) Free deliveries
- R0480(-) CET1 instruments of financial sector entities where the institution does not have a significant investment
- R0481(-) AT1 instruments of financial sector entities where the institution does not have a significant investment
- R0482(-) T2 instruments of financial sector entities where the institution does not have a significant investment
- R0490(-) Deductible deferred tax assets that rely on future profitability and arise from temporary differences
- R0500(-) CET1 instruments of financial sector entities where the institution has a significant investment
- R0501(-) AT1 instruments of financial sector entities where the institution has a significant investment
- R0502(-) T2 instruments of financial sector entities where the institution has a significant investment
- R0515(-) Other foreseeable tax charges
- R0524(-) Additional deductions of CET1 Capital due to Article 3 CRR
- R0529CET1 capital elements or deductions - other
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 warning.
The Bank’s own words and formula
The plain words above spell out the Bank’s formula, with each cell named from its templates. In the Bank of England’s list of validations, word for word:
[boe_b0028_ss];[{t: SC01.00.01.01, r: 0020, c: 0010} = {t: SC01.00.01.01, r: 0030, c: 0010} + {t: SC01.00.01.01, r: 0130, c: 0010} + {t: SC01.00.01.01, r: 0180, c: 0010} + {t: SC01.00.01.01, r: 0200, c: 0010} + {t: SC01.00.01.01, r: 0210, c: 0010} + {t: SC01.00.01.01, r: 0230, c: 0010} + {t: SC01.00.01.01, r: 0250, c: 0010} + {t: SC01.00.01.01, r: 0300, c: 0010} + {t: SC01.00.01.01, r: 0340, c: 0010} + {t: SC01.00.01.01, r: 0370, c: 0010} + {t: SC01.00.01.01, r: 0390, c: 0010} + {t: SC01.00.01.01, r: 0430, c: 0010} + {t: SC01.00.01.01, r: 0440, c: 0010} + {t: SC01.00.01.01, r: 0450, c: 0010} + {t: SC01.00.01.01, r: 0460, c: 0010} + {t: SC01.00.01.01, r: 0470, c: 0010} + {t: SC01.00.01.01, r: 0480, c: 0010} + {t: SC01.00.01.01, r: 0481, c: 0010} + {t: SC01.00.01.01, r: 0482, c: 0010} + {t: SC01.00.01.01, r: 0490, c: 0010} + {t: SC01.00.01.01, r: 0500, c: 0010} + {t: SC01.00.01.01, r: 0501, c: 0010} + {t: SC01.00.01.01, r: 0502, c: 0010} + {t: SC01.00.01.01, r: 0515, c: 0010} + {t: SC01.00.01.01, r: 0524, c: 0010} + {t: SC01.00.01.01, r: 0529, c: 0010}]
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: SC01.00.01.01, r: 0030, c: 0010} + {t: SC01.00.01.01, r: 0130, c: 0010} + {t: SC01.00.01.01, r: 0180, c: 0010} + {t: SC01.00.01.01, r: 0200, c: 0010} + {t: SC01.00.01.01, r: 0210, c: 0010} + {t: SC01.00.01.01, r: 0230, c: 0010} + {t: SC01.00.01.01, r: 0250, c: 0010} + {t: SC01.00.01.01, r: 0300, c: 0010} + {t: SC01.00.01.01, r: 0340, c: 0010} + {t: SC01.00.01.01, r: 0370, c: 0010} + {t: SC01.00.01.01, r: 0390, c: 0010} + {t: SC01.00.01.01, r: 0430, c: 0010} + {t: SC01.00.01.01, r: 0440, c: 0010} + {t: SC01.00.01.01, r: 0450, c: 0010} + {t: SC01.00.01.01, r: 0460, c: 0010} + {t: SC01.00.01.01, r: 0470, c: 0010} + {t: SC01.00.01.01, r: 0480, c: 0010} + {t: SC01.00.01.01, r: 0481, c: 0010} + {t: SC01.00.01.01, r: 0482, c: 0010} + {t: SC01.00.01.01, r: 0490, c: 0010} + {t: SC01.00.01.01, r: 0500, c: 0010} + {t: SC01.00.01.01, r: 0501, c: 0010} + {t: SC01.00.01.01, r: 0502, c: 0010} + {t: SC01.00.01.01, r: 0515, c: 0010} + {t: SC01.00.01.01, r: 0524, c: 0010} + {t: SC01.00.01.01, r: 0529, c: 0010}Other rules on Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
- Own funds for SDDTs (CA1 SDDT): "Additional tier 1 capital" must equal the sum of 7 cells (boe_b0029_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): "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): this is the TIER1 Capital amount calculated by using as parameters c0010 or c0030 if it’s greater than c0010 (boe_b0024_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): values must agree (boe_b0022_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.