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1 min readBlockingBank of England banking taxonomy 4.1.1Updated 11 November 2026

Risk-weighted assets (RWAs) for Operational risk are equal to 12.5 times Operational Risk Capital (ORC) (OF16.00.01.02, OF02.00.01.01, SC16.00.01.02 and others, Bank of England check boe_b0453)

A blocking check on the operational risk: part 2 - minimum required capital (OPR) (OF16.00.01.02), own funds requirements (CA2) (OF02.00.01.01), operational risk: part 2 - minimum required capital (OPR) (SC16.00.01.02) and own funds requirements for SDDTs (CA2 SDDT) (SC02.00.01.01) templates, in the own funds (PRA001) and own funds for SDDTs (PRA116) returns.

Line4 Check runs it on the own funds (PRA001) and own funds for SDDTs (PRA116) returns, proven on test files, check by check: the same outcome on all six test files of those returns.

Check your file for this rule

The rule in plain words

Risk-weighted assets (RWAs) for Operational risk are equal to 12.5 times Operational Risk Capital (ORC)

In each of "Internal Loss Multiplier (ILM)=1" (column 0010), "ILM (losses greater than £20,000)" (column 0020) and "ILM (losses greater than £90,000)" (column 0030) of Operational risk: part 2 - minimum required capital (OPR) (OF16.00.01.02): "Operational risk RWAs" (row 0020) must equal "Minimum required operational risk capital (ORC)" (row 0010) multiplied by 12.5.

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 OF16.00.01.02 as reported.

The cells it reads

Own funds requirements (CA2) (OF02.00.01.01)

Row

  • R0590Total risk exposure amount for operational risk (OpR)

Column

  • C0010All approaches

Operational risk: part 2 - minimum required capital (OPR) (OF16.00.01.02)

Rows

  • R0010Minimum required operational risk capital (ORC)
  • R0020Operational risk RWAs

Columns

  • C0010Internal Loss Multiplier (ILM)=1
  • C0020ILM (losses greater than £20,000)
  • C0030ILM (losses greater than £90,000)

Own funds requirements for SDDTs (CA2 SDDT) (SC02.00.01.01)

Row

  • R0590Total risk exposure amount for operational risk (OpR)

Column

  • C0010All approaches

Operational risk: part 2 - minimum required capital (OPR) (SC16.00.01.02)

Rows

  • R0010Minimum required operational risk capital (ORC)
  • R0020Operational risk RWAs

Columns

  • C0010Internal Loss Multiplier (ILM)=1
  • C0020ILM (losses greater than £20,000)
  • C0030ILM (losses greater than £90,000)

Which returns it applies to

Line4 Check runs it on the own funds (PRA001) and own funds for SDDTs (PRA116) returns on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to own funds for SDDTs (PRA116) and own funds (PRA001) 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 formulaShow

The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.

{t: OF16.00.01.02, r: 0020} = {t: OF16.00.01.02, r: 0010} * 12.5

Where it applies, in the Bank's words (its scope):

scope({t: OF16.00.01.02, c:0010;0020;0030, f: banking, fv: banking_reporting})

Every PRA banking rule on OF16.00.01.02

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.