The rule in plain words
Value adjustments check
In Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01): "(-) Value adjustments due to the requirements for prudent valuation" in column "Amount" (row 0290, column 0010) must equal -0.001 multiplied by "Total fair valued assets and liabilities" in column "Amount" (row 0870, column 0010) in Memorandum items for SDDTs (CA4 SDDT) (SC04.00.01.01).
This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it. It runs only when your filing indicators mark SC01.00.01 and SC04.00.01 as reported.
The cells it reads
Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
Row
- R0290(-) Value adjustments due to the requirements for prudent valuation
Column
- C0010Amount
Memorandum items for SDDTs (CA4 SDDT) (SC04.00.01.01)
Row
- R0870Total fair valued assets and liabilities
Column
- C0010Amount
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 warning.
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: SC01.00.01.01, r: 0290, c: 0010} = -0.001 * {t: SC04.00.01.01, r: 0870, c: 0010}Other rules on Own funds for SDDTs (CA1 SDDT) (SC01.00.01.01)
- Own funds for SDDTs (CA1 SDDT): value for mentioned rows should be lower than or equal to zero (boe_b0032_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): every value in 24 rows in column "Amount" must be zero or more (boe_b0031_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): "Tier 2 capital" must equal the sum of 8 cells (boe_b0030_ss)
- Own funds for SDDTs (CA1 SDDT): "Additional tier 1 capital" must equal the sum of 7 cells (boe_b0029_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): "Common equity tier 1 capital" must equal the sum of 26 cells (boe_b0028_ss)
- This is the Own Funds amount calculated by using as variable parameters c0010 or alternatively c0030 if c0030 is greater than c0010 (boe_b0026_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): this is the TIER1 Capital amount calculated by using as parameters c0010 or c0030 if it’s greater than c0010 (boe_b0024_ss)Blocking
- Own funds for SDDTs (CA1 SDDT): values must agree (boe_b0022_ss)Blocking
Every PRA banking rule on SC01.00.01.01
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.