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2 min readWarningBank of England banking taxonomy 4.1.1Updated 11 November 2026

"Total core approach" in column "Total AVA" must equal the sum of 8 cells (C32.02.01.01, C32.02.01.03, Bank of England check v8640_m)

A warning on the prudent valuation: core approach - Pre and post diversification (PRUVAL 2) (C32.02.01.01) and prudent valuation: core approach - Other (PRUVAL 2) (C32.02.01.03) templates, 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): "Total core approach" in column "Total AVA" (row 0010, column 0110) must equal the sum of 8 cells (listed below).

What to do if your return fails it

  1. 01Open the tables below and find the cells the rule reads.
  2. 02Add up the parts in your return and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark C32.02.01 as reported.
  6. 06This 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

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

Rows

  • R0010Total core approach
  • R0180Portfolios under the fall-back approach

Columns

  • C0010Market price uncertainty
  • C0030Close-out costs
  • C0050Model risk
  • C0110Total AVA

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

Row

  • R0010Total core approach

Columns

  • C0070Concentrated positions
  • C0080Future admnistrative costs
  • C0090Early termination
  • C0100Operational risk

A worked example

With simple numbers.

Illustrative values
Total core approach, Market price uncertainty1,200
Total core approach, Close-out costs800
Total core approach, Model risk450
Total core approach, Concentrated positions300
Total core approach, Future admnistrative costs150
Total core approach, Early termination100
Total core approach, Operational risk60
Portfolios under the fall-back approach, Total AVA40
Together3,100
What the rule then expects

Total core approach, Total AVA must then be 3,100.

3,100Passes
3,200Fails

A file that reports 3,100 passes. One that reports 3,200 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

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 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:

[v8640_m];[{t: C32.02.01.01, r: 0010, c: 0110} = {t: C32.02.01.01, r: 0010, c: 0010} + {t: C32.02.01.01, r: 0010, c: 0030} + {t: C32.02.01.01, r: 0010, c: 0050} + {t: C32.02.01.03, r: 0010, c: 0070} + {t: C32.02.01.03, r: 0010, c: 0080} + {t: C32.02.01.03, r: 0010, c: 0090} + {t: C32.02.01.03, r: 0010, c: 0100} + {t: C32.02.01.01, r: 0180, c: 0110}]
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: 0010, c: 0110} = {t: C32.02.01.01, r: 0010, c: 0010} + {t: C32.02.01.01, r: 0010, c: 0030} + {t: C32.02.01.01, r: 0010, c: 0050} + {t: C32.02.01.03, r: 0010, c: 0070} + {t: C32.02.01.03, r: 0010, c: 0080} + {t: C32.02.01.03, r: 0010, c: 0090} + {t: C32.02.01.03, r: 0010, c: 0100} + {t: C32.02.01.01, r: 0180, c: 0110}

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.