The rule in plain words
In Capital adequacy - capital ratios (CA3) (C03.00.01.01): every value in 12 rows (listed below) in column "Amount" (column 0010) must be less than 1.
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 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.
- 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C03.00.01 as reported.
- 05This 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
Capital adequacy - capital ratios (CA3) (C03.00.01.01)
Rows
- R0010CET1 Capital ratio
- R0030T1 Capital ratio
- R0050Total capital ratio
- R0130Total SREP capital requirement ratio (TSCR)
- R0140TSCR: to be made up of CET1 capital1080
- R0150TSCR: to be made up of Tier 1
- R0160Overall capital requirement ratio (OCR)
- R0170OCR: to be made up of CET1 capital
- R0180OCR: to be made up of Tier 1
- R0190OCR and Pillar 2 Guidance (P2G)
- R0200OCR and P2G: to be made up of CET1 capital
- R0210OCR and P2G: to be made up of Tier 1 capital
Column
- C0010Amount
Capital adequacy - capital ratios and capital levels for SDDTs (CA3 SDDT) (SC03.00.01.01)
Rows
- R0010CET1 Capital ratio
- R0030T1 Capital ratio
- R0050Total capital ratio
- R0130Total capital requirement (TCR) ratio
- R0140TCR: to be made up of CET1 capital
- R0150TCR: to be made up of Tier 1 capital
- R0160Overall capital requirement ratio (OCR)
- R0170OCR: to be made up of CET1 capital
- R0180OCR: to be made up of Tier 1
- R0190OCR and SCB ratio
- R0200OCR and SCB: to be made up of CET1 capital
- R0210OCR and SCB: to be made up of Tier 1 capital
Column
- C0010Amount
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 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:
v4886_m: [C03.00.01.01 (r0010;0030;0050;0130;0140;0150;0160;0170;0180;0190;0200;0210)] {c0010} < 1
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: C03.00.01.01, r: 0010; 0030; 0050; 0130; 0140; 0150; 0160; 0170; 0180; 0190; 0200; 0210, c: 0010} < 1Other rules on Capital adequacy - capital ratios (CA3) (C03.00.01.01)
- Capital adequacy - capital ratios (CA3): every value in 9 rows in column "Amount" must be zero or more (v3687_s)Blocking
- If "Surplus(+)/Deficit(-) of CET1 capital" is less than 0, "CET1 Capital ratio" must be less than 0.045 (v6252_m)Blocking
- If "CET1 Capital ratio" is less than 0.045, "Surplus(+)/Deficit(-) of CET1 capital" must be less than 0 (v6253_m)
- Capital adequacy - capital ratios (CA3): if "Surplus(+)/Deficit(-) of T1 capital" is less than 0, "T1 Capital ratio" must be less than 0.06 (v6254_m)Blocking
- Capital adequacy - capital ratios (CA3): if "T1 Capital ratio" is less than 0.06, "Surplus(+)/Deficit(-) of T1 capital" must be less than 0 (v6255_m)
- If "Total capital ratio" is less than 0.08, "Surplus(+)/Deficit(-) of total capital" must be less than 0 (v6256_m)
- If "Surplus(+)/Deficit(-) of total capital" is less than 0, "Total capital ratio" must be less than 0.08 (v6257_m)Blocking
- Capital adequacy - capital ratios (CA3): "Total SREP capital requirement ratio (TSCR)" in column "Amount" must not be less than 0.08 (v6260_m)
Every PRA banking rule on C03.00.01.01
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.