The pressure placed by COVID-19 on European banks is well documented. To help ease that pressure, the European Union (EU) enacted emergency amendments to the EU Capital Requirements Regulation (CRR) known as the ‘CRR Quick Fix’ which include an end to the requirement to deduct the full value of software intangible assets from Common Equity Tier 1 (CET1) capital.
EU COVID-19 ‘Quick Fix’ for software asset deductions in response to COVID-19 impacts
This publication summarizes the regulatory rules and accounting requirements to help bring clarity to the capitalization framework. Download the PDF to read the entire article.