The rule in plain words
SDDTs aren’t subject to CRDIV buffers so these rows should be the same (CET1)
In column "Amount" (0010) of Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01): "OCR: to be made up of CET1 capital" (row 0170) must equal "TCR: to be made up of CET1 capital" (row 0140).
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark SC03.00.01 as reported.
- 05This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01)
Rows
- R0140TCR: to be made up of CET1 capital
- R0170OCR: to be made up of CET1 capital
Column
- C0010Amount
A worked example
With simple numbers.
OCR: to be made up of CET1 capital must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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 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: 0170, c: 0010} = {t: SC03.00.01.01, r: 0140, c: 0010}Other rules on Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01)
- 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 (Tier 1) (boe_b0115_ss)Blocking
- Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT): values must agree (boe_b0027_ss)Blocking
- 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
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.