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

Prudent valuation: core approach - Pre and post diversification (PRUVAL 2): a value must not be more than another (C32.02.01.01, Bank of England check v6571_s)

A blocking check on the prudent valuation: core approach - Pre and post diversification (PRUVAL 2) template (C32.02.01.01), in the own funds (PRA001) return.

Line4 Check runs it on the own funds (PRA001) return, proven on test files, check by check: the same outcome on all three test files of that return.

Check your file for this ruleWhat to do if it fails

The rule in plain words

In Prudent valuation: core approach - Pre and post diversification (PRUVAL 2) (C32.02.01.01): every value in "(-) Diversification benefits" (row 0140), "(-) Diversification benefit calculated using method 1" (row 0150) and "(-) Diversification benefit calculated using method 2" (row 0160) in 7 columns (listed below) must be zero or less.

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 table 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. 03It runs only when your filing indicators mark C32.02.01 as reported.
  4. 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

Prudent valuation: core approach - Pre and post diversification (PRUVAL 2) (C32.02.01.01)

Rows

  • R0140(-) Diversification benefits
  • R0150(-) Diversification benefit calculated using method 1
  • R0160(-) Diversification benefit calculated using method 2

Columns

  • C0010Market price uncertainty
  • C0020Of which: calculated using the expert based approach
  • C0030Close-out costs
  • C0040Of which: calculated using the expert based approach
  • C0050Model risk
  • C0060Of which: calculated using the expert based approach
  • C0110Total AVA

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:

[v6571_s];[{t: C32.02.01.01, r: 0140; 0150; 0160, c: 0010; 0020; 0030; 0040; 0050; 0060; 0110} <= 0]
Show the formulaShow

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

{t: C32.02.01.01, r: 0140; 0150; 0160, c: 0010; 0020; 0030; 0040; 0050; 0060; 0110} <= 0

Every PRA banking rule on C32.02.01.01

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.