On 30 June 2020 the PRA issued a statement on certain elements of the CRR ‘Quick Fix’ package of amendments addressing the COVID-19 pandemic. The PRA expressed its initial views on the following CRR ‘Quick Fix’ measures:
The PRA confirms that UK credit institutions already applying the CRR transitional arrangements for IFRS 9 will need to implement the revised calculations set out in the CRR ‘Quick Fix’, including amending the CET1 add-back factors applied to relevant ECL provisions for 2020 to 2024.
For the remaining measures mentioned above, the PRA is not adopting the CRR ‘Quick Fix’ changed application dates at this time. Instead, the PRA will firstly assess how these measures impact banks’ capital positions and whether there are other implications before deciding on any further action. Regarding the prudential treatment of software assets, the PRA states that it will also await the outcome of the ongoing EBA consultation.