The rule in plain words
Total RWEA should be the same for the relevant exposure class across the templates
In Own funds requirements (CA2) (OF02.00.01.01): "Retail - Qualifying revolving" in column "All approaches" (row 0390, column 0010) must equal "Total exposures" in column "Risk-weighted exposure amount" (row 0010, column 0260) on sheet "Retail - Qualifying revolving (AIRB approach)" (sheet 0015) in Credit and counterparty credit risks and free deliveries: IRB approach to capital requirements (CR IRB 1) (OF08.01.01.01).
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 OF02.00.01 and OF08.01.01 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
Own funds requirements (CA2) (OF02.00.01.01)
Row
- R0390Retail - Qualifying revolving
Column
- C0010All approaches
Which returns it applies to
Line4 Check runs it on the own funds (PRA001) return on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to 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 formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: OF02.00.01.01, r: 0390, c: 0010} = {t: OF08.01.01.01, r: 0010, c: 0260, z: 0015}Other rules on Own funds requirements (CA2) (OF02.00.01.01)
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0627)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0629)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0626)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0630)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0625)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0631)Blocking
- Own funds requirements (CA2): total RWEA should be the same for the relevant exposure class across the templates (boe_b0624)Blocking
- Own funds requirements (CA2): specialised Lending (Project finance) should be consistent across templates (boe_b0632)Blocking
Every PRA banking rule on OF02.00.01.01
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.