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1 min readWarningBank of England banking taxonomy 4.1.1Updated 11 November 2026

Prudent valuation: model risk AVA (PRUVAL 3): a value must not be more than another (C32.03.01.01, C32.02.01.03, Bank of England check v10698_m)

A warning on the prudent valuation: model risk AVA (PRUVAL 3) (C32.03.01.01) and prudent valuation: core approach - Other (PRUVAL 2) (C32.02.01.03) templates, in the own funds (PRA001) return.

Line4 Check does not run it on the own funds (PRA001) return. Held back after a different result on a test file. It gave a different result on at least one of Line4’s test files: a different outcome, or a different number of times tested. It is held back while we settle which is right, and stays out until it is proven.

Check your PRA001 returnWhat to do if it fails

Line4 Check does not run this check yet, so the button checks your return against the Bank's other checks for it. The validation run when you submit includes this one.

The rule in plain words

In Prudent valuation: model risk AVA (PRUVAL 3) (C32.03.01.01): the sum of "Model risk" (column 0130) must not be more than "Portfolios under articles 9 to 17 - total category level post-diversification" in column "Model risk" (row 0030, column 0190) in Prudent valuation: core approach - Other (PRUVAL 2) (C32.02.01.03).

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. 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
  3. 03This 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

Prudent valuation: core approach - Other (PRUVAL 2) (C32.02.01.03)

Row

  • R0030Portfolios under articles 9 to 17 - total category level post-diversification

Column

  • C0190Model risk

Prudent valuation: model risk AVA (PRUVAL 3) (C32.03.01.01)

Column

  • C0130Model risk

Which returns it applies to

It is an active check of the Bank's for the own funds (PRA001) return on Bank of England banking taxonomy 4.1.1. Line4 Check does not run it yet, for the reason above. 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:

v10698_m: [C32.03.01.01] sum({C32.03.01.01, c0130, (All rows)}) <= {C32.02.01.03, r0030, c0190}
Show the formulaShow

The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.

sum({t: C32.03.01.01, c: 0130}) <= {t: C32.02.01.03, r: 0030, c: 0190}

Every PRA banking rule on C32.03.01.01

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.