The rule in plain words
In column "Amount" (0010) of Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01): "Additional tier 1 capital" (row 0530) must equal the sum of 7 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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
Rows
- R0530Additional tier 1 capital
- R0540Capital instruments eligible as AT1 Capital
- R0670Instruments issued by subsidiaries that are given recognition in AT1 Capital
- R0690(-) Reciprocal cross holdings in AT1 Capital
- R0720(-) Excess of deduction from T2 items over T2 Capital
- R0740Excess of deduction from AT1 items over AT1 Capital (deducted in CET1)
- R0744(-) Additional deductions of AT1 Capital due to Article 3 CRR
- R0748AT1 capital elements or deductions - other
Column
- C0010Amount
A worked example
With simple numbers.
Additional tier 1 capital must then be 3,060.
A file that reports 3,060 passes. One that reports 3,160 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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 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_b0029_ss];[{t: SC01.00.01.01, r: 0530, c: 0010} = {t: SC01.00.01.01, r: 0540, c: 0010} + {t: SC01.00.01.01, r: 0670, c: 0010} + {t: SC01.00.01.01, r: 0690, c: 0010} + {t: SC01.00.01.01, r: 0720, c: 0010} + {t: SC01.00.01.01, r: 0740, c: 0010} + {t: SC01.00.01.01, r: 0744, c: 0010} + {t: SC01.00.01.01, r: 0748, 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: 0530, c: 0010} = {t: SC01.00.01.01, r: 0540, c: 0010} + {t: SC01.00.01.01, r: 0670, c: 0010} + {t: SC01.00.01.01, r: 0690, c: 0010} + {t: SC01.00.01.01, r: 0720, c: 0010} + {t: SC01.00.01.01, r: 0740, c: 0010} + {t: SC01.00.01.01, r: 0744, c: 0010} + {t: SC01.00.01.01, r: 0748, c: 0010}Other rules on Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
- 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): "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
- 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): value for mentioned rows should be lower than or equal to zero (boe_b0032_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): 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.