Recent regulatory developments focussing on banking and finance. This week reports on the EBA's consultation on draft RTS on the prudential treatment of software assets.
Contents
- CRR: draft RTS on prudential treatment of software assets
CRR: draft RTS on prudential treatment of software assets
The European Banking Authority (EBA) is consulting on draft regulatory technical standards (RTS) specifying the methodology to be adopted for the prudential treatment of software assets under Article 36(4) of the Capital Requirements Regulation (CRR). The draft RTS would amend Delegated Regulation (EU) 241/2014 supplementing the CRR with regard to RTS for own funds following amendments made to Article 36(1)(b) of the CRR by CRR II.
The EBA notes that, in particular, the draft RTS introduce a prudential treatment based on the amortisation of software assets, which is deemed to strike an appropriate balance between the need to maintain a certain margin of conservatism in the treatment of software assets as intangibles, and their relevance from a business and an economic perspective.
The consultation closes on 9 July 2020. When finalised, the draft RTS will be submitted to the European Commission for adoption before being published in the Official Journal of the EU.
[View source.]