Prudent valuation: core approach - Pre and post diversification (PRUVAL 2): a conditional check (C32.02.01.01, C32.02.01.03, Bank of England check v10697_m)

The rule in plain words

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.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
3. 03It runs only when your filing indicators mark C32.02.01 as reported.
4. 04This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

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 warning.

The Bank’s own words and formula

The plain words above spell out the Bank’s formula, with each cell named from its templates. In the Bank of England’s list of validations, word for word:

[v10697_m];[if not(isNull({t: C32.02.01.01, r: 0180, c: 0110})) then stringLength({t: C32.02.01.03, r: 0180, c: 0270}) > 0 else true()]

Other rules on Prudent valuation: core approach - Pre and post diversification (PRUVAL 2) (C32.02.01.01)

Every PRA banking rule on C32.02.01.01

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.