On 12 November 2020, the European Commission updated its webpage for implementing and delegated acts under the Capital Requirements Regulation (CRR).
The update provides that the prudential treatment of certain software assets was revised by Regulation (EU) 2019/876, in order to further support the transition towards a more digitised banking sector. Regulation 2019/876 introduced Article 36(4) into the CRR, which requires the European Banking Authority (EBA) to develop draft regulatory technical standards specifying the application of the deductions related to software assets from Common Equity Tier 1 items. To ensure coherence of the provisions related to own funds and to facilitate their application, it is appropriate to incorporate those regulatory technical standards into Commission Delegated Regulation (EU) 241/2014, which groups all technical standards concerning own funds. The update links to a Commission Delegated Regulation of 12 November 2020 amending Delegated Regulation (EU) 241/2014 as regards the deduction of software assets from Common Equity Tier 1 items. This Commission Delegated Regulation further specifies how that exemption from deductions is to be applied, by defining the exact scope of software assets to be exempted and how they will be risk-weighted. The Commission Delegated Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It becomes binding in its entirety and directly applicable in all Member States.