Capital adequacy - capital ratios (CA3): "OCR and P2G: to be made up of Tier 1 capital" must not be less than "OCR: to be made up of Tier 1" (C03.00.01.01, SC03.00.01.01, Bank of England check v6267_m)

The rule in plain words

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 smaller than it may be, one of them is wrong: check both before you change either.
3. 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark C03.00.01 as reported.
5. 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

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:

v6267_m: [C03.00.01.01 (c0010)] {r0210} >= {r0180}

Other rules on Capital adequacy - capital ratios (CA3) (C03.00.01.01)

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.