The rule in plain words
In column "Exactly matching" (0030) of Prudent valuation: fair-valued assets and liabilities (PRUVAL 1) (C32.01.01.01): "Total fair-valued assets" (row 0020) must equal the sum of 11 cells (listed below).
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C32.01.01 as reported.
- 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Prudent valuation: fair-valued assets and liabilities (PRUVAL 1) (C32.01.01.01)
Rows
- R0020Total fair-valued assets
- R0030Financial assets held for trading
- R0040Trading financial assets
- R0050Non-trading financial assets mandatorily at fair value through profit or loss
- R0060Financial assets designated at fair value through profit or loss
- R0070Financial assets at fair value through other comprehensive income
- R0080Non-trading non-derivative financial assets measured at fair value through profit or loss
- R0090Non-trading non-derivative financial assets measured at fair value to equity
- R0100Other non-trading non-derivative financial assets
- R0120Fair value changes of the hedged items in portfolio hedge of interest rate risk
- R0130Investments in subsidiaries, joint ventures and associates
- R0140(-) Haircuts for trading assets at fair value
Column
- C0030Exactly matching
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 blocking check.
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:
v6322_m: [C32.01.01.01 (c0030)] {r0020} = {r0030} + {r0040} + {r0050} + {r0060} + {r0070} + {r0080} + {r0090} + {r0100} + {r0120} + {r0130} + {r0140}
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: C32.01.01.01, r: 0020, c: 0030} = {t: C32.01.01.01, r: 0030, c: 0030} + {t: C32.01.01.01, r: 0040, c: 0030} + {t: C32.01.01.01, r: 0050, c: 0030} + {t: C32.01.01.01, r: 0060, c: 0030} + {t: C32.01.01.01, r: 0070, c: 0030} + {t: C32.01.01.01, r: 0080, c: 0030} + {t: C32.01.01.01, r: 0090, c: 0030} + {t: C32.01.01.01, r: 0100, c: 0030} + {t: C32.01.01.01, r: 0120, c: 0030} + {t: C32.01.01.01, r: 0130, c: 0030} + {t: C32.01.01.01, r: 0140, c: 0030}Other rules on Prudent valuation: fair-valued assets and liabilities (PRUVAL 1) (C32.01.01.01)
- Prudent valuation: fair-valued assets and liabilities (PRUVAL 1): "Total fair-valued assets" must equal the sum of 12 cells (v6321_m)Blocking
- Prudent valuation: fair-valued assets and liabilities (PRUVAL 1): "Total fair-valued assets" must equal "Derivatives - hedge accounting" (v6323_m)Blocking
- "Total fair-valued assets and liabilities" must equal the sum of "Total fair-valued assets" and "Total fair-valued liabilities" (v6320_m)Blocking
- Prudent valuation: fair-valued assets and liabilities (PRUVAL 1): a total must equal the sum of its parts (v6324_m)Blocking
- Prudent valuation: fair-valued assets and liabilities (PRUVAL 1): a total must equal the sum of its parts (v6325_m)Blocking
- "Total fair-valued liabilities" must equal "Derivatives - hedge accounting" (v6326_m)Blocking
- "of which: trading book" must not be more than "Fair-valued assets and liabilities" (v6327_m)Blocking
- "of which: trading book" must not be less than "Fair-valued assets and liabilities" (v6328_m)Blocking
Every PRA banking rule on C32.01.01.01
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.