The rule in plain words
Historical Losses must be reported when the Business Indicator amount is greater than £0.88bn. All the rows must be filled in for any year for which operational losses were incurred. For years where no data exists (after the minimum five years), all rows for that year may be left blank
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
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 OF16.00.01.05 as reported.
The cells it reads
Operational risk: part 5 - historical losses (OPR) (OF16.00.01.05)
Rows
- R0010Total amount of operational losses net of recoveries (no exclusions)
- R0020Total number of operational risk losses
- R0030Total amount of excluded operational risk losses
- R0040Total number of exclusions
- R0050Total amount of operational losses net of recoveries and net of excluded losses
- R0060Total amount of operational losses net of recoveries (no exclusions)
- R0070Total number of operational risk losses
- R0080Total amount of excluded operational risk losses
- R0090Total number of exclusions
- R0100Total amount of operational losses net of recoveries and net of excluded losses
Columns
- C0010T-9
- C0020T-8
- C0030T-7
- C0040T-6
- C0050T-5
- C0060T-4
- C0070T-3
- C0080T-2
- C0090T-1
- C0100T
- C0110Ten-year average
Operational risk: part 5 - historical losses (OPR) (SC16.00.01.05)
Rows
- R0010Total amount of operational losses net of recoveries (no exclusions)
- R0020Total number of operational risk losses
- R0030Total amount of excluded operational risk losses
- R0040Total number of exclusions
- R0050Total amount of operational losses net of recoveries and net of excluded losses
- R0060Total amount of operational losses net of recoveries (no exclusions)
- R0070Total number of operational risk losses
- R0080Total amount of excluded operational risk losses
- R0090Total number of exclusions
- R0100Total amount of operational losses net of recoveries and net of excluded losses
Columns
- C0010T-9
- C0020T-8
- C0030T-7
- C0040T-6
- C0050T-5
- C0060T-4
- C0070T-3
- C0080T-2
- C0090T-1
- C0100T
- C0110Ten-year average
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 plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
(If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0010})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0010})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0020})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0020})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0030})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0030})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0040})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0040})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0050})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0050})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0060})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0060})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0070})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0070})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0080})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0080})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0090})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0090})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0100})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0100})=10) AND (If count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0110})>0 then count({t: OF16.00.01.05, r: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100, c: 0110})=10)Other rules on Operational risk: part 5 - historical losses (OPR) (OF16.00.01.05)
- Historical Losses for at least 5 periods must be reported when the Business Indicator amount is greater than £0.88bn (boe_b0918)Blocking
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0813)
- The ten-year average Total number of exclusions takes into account the sum of the annual amounts over the previous years from T to T-9 (boe_b0812)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0811)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0810)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0809)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0808)
- The ten-year average Total number of exclusions takes into account the sum of the annual amounts over the previous years from T to T-9 (boe_b0807)
Every PRA banking rule on OF16.00.01.05
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.