Prudent valuation: core approach - Other (PRUVAL 2): a value must not be less than another (C32.02.01.03, C32.04.01.01, Bank of England check v6362_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. 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. 03This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

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 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:

v6362_m: [C32.02.01.03, C32.04.01.01] {C32.02.01.03, r0010, c0070} >= sum({C32.04.01.01, (rNNN), c0080})

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

Every PRA banking rule on C32.02.01.03

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.