EBA’s software treatment offers banks meagre capital benefits
Three-year prudential amortisation approach more generous than initial two-year proposal
A new approach for including software assets in bank capital will bring only marginal benefits to most firms, an impact analysis by the European Banking Authority (EBA) shows.
Under current rules, the value of software assets are excluded from the Common Equity Tier 1 (CET1) capital of European banks. European policy-makers pledged to change these last year to bring the treatment of software more in line with practices in the US and Switzerland.
In final draft standards on a fresh methodology
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