PRA’s Woods: ending capital deductions for IT is ‘dubious’

Regulator signals potential divergence between UK and EU capital rules after Brexit transition

Sam Woods
Sam Woods: questioned how EU deviating from Basel rules would affect UK’s assessment of EU as equivalent
Bank of England

The head of UK prudential regulation has labelled a European Union rule change that allows banks to stop deducting the value of software from their capital as “highly dubious”. The stance could result in potential divergence between EU and UK capital rules once the post-Brexit transition period comes to an end – potentially as early as January 2021.

In May 2019, the EU passed a series of revisions to its bank capital laws, most of which will take effect in June 2021. Among those revisions

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here