EU software capital reversal to hit Lloyds, Barclays the most

- By Joasia E. Popowicz
- @joasiaepopowicz
- 08 Nov 2021

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Leading UK banks expect a negative impact on their solvency ratios of between 25 and 50 basis points as the European Union’s beneficial treatment on software intangibles is set to expire on January 1.

In July, the Prudential Regulation Authority (PRA) announced the removal of any deduction of software assets from UK banks’ Common Equity Tier 1 capital, with Lloyds and Barclays poised to feel the effect the most.

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