The rule in plain words
Business Indicator Bucket 1 is mandatory and must not be empty
In Operational risk: part 3 - business indicator component (OPR) (OF16.00.01.03): "Bucket Amount" in column "Bucket 1 - 12%" (row 0020, column 0020) must be reported.
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 OF16.00.01.03 as reported.
The cells it reads
Operational risk: part 3 - business indicator component (OPR) (OF16.00.01.03)
Row
- R0020Bucket Amount
Column
- C0020Bucket 1 - 12%
Operational risk: part 3 - business indicator component (OPR) (SC16.00.01.03)
Row
- R0020Bucket Amount
Column
- C0020Bucket 1 - 12%
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 formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
not(isNull({t: OF16.00.01.03, r: 0020, c: 0020}))Other rules on Operational risk: part 3 - business indicator component (OPR) (OF16.00.01.03)
- A positive amount has been reported in Bucket 3 of the BI component, therefore, Bucket 2 cannot be blank (boe_b0914)
- Operational risk: part 3 - business indicator component (OPR): bucket 3 BIC represents 18% of the BI amount greater than £26bn (boe_b0911)
- This represents the BIC for Bucket 2 when the BI range is between £0.88bn and £26bn, using a 15% marginal coefficient (boe_b0910)
- To calculate the BIC for Bucket 1 when the BI amount is less than or equal to £0.88bn, the BI is multiplied by 12% (boe_b0909)
- Operational risk: part 3 - business indicator component (OPR): a conditional check (boe_b0600)Not run
- Operational risk: part 3 - business indicator component (OPR): a conditional check (boe_b0599)Not run
- The Business Indicator Component (BIC) is equal to the sum of the amounts in Bucket 1, Bucket 2, Bucket 3 (boe_b0456)Blocking
Every PRA banking rule on OF16.00.01.03
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.