Regulatory Alerts2026-01-01
Consultation on the Prudential Treatment of Software Assets
Bank of Jamaica issued this Guidance to establish supervisory expectations for the prudential treatment of software assets for Deposit-Taking Institutions (DTIs) when calculating regulatory capital. It mandates an accelerated prudential amortisation period of three years for eligible software assets, requiring DTIs to deduct the difference between the accounting carrying amount and the prudentially amortised value from Common Equity Tier 1 (CET1) capital. The remaining prudential value is assigned a 100% risk weight, and an aggregate cap of 10% of CET1 capital requirements is imposed, alongside requirements for robust governance and risk management of these assets.
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