the Bank of England intends to depart from European Union regulations with a proposal that would make banking capital rules more stringent in the United Kingdom than in the European continent.

and according to Arabnet, the European Banking Authority (EBA) decided late last year that banks can count investment in software within the basic levels of capital or the capital base of the bank. For example, if a bank spends 100 million euros on a new technological system within the bank, it can be considered within the capital base through which the bank's financial efficiency is measured in the event of exposure to losses.

But in a harsh judgment of the decision, the Bank of England's Prudential Regulatory Authority (PRA) said it had not found reliable evidence that software assets could effectively absorb losses if Financial stress, and thus feel anxious.

Autonomous analyst Christopher Kant told the Financial Times, writing the statement ... unusually strong and makes the PRA's view bleak.

In a speech directed on Wednesday, Bank of England Governor Andrew Bailey redoubled his stance, saying that European Union policy would misrepresent the bank's ability to absorb the loss, and conflict with Internationally accepted Basel standards. On Friday, the Bank of England began consulting on canceling the rule, according to Al-Arabiya.net.

one of the sources familiar with the UK regulator's thinking said: It is unlikely that when a bank is in difficulty, these investments will have value that can be liquidated.

He added: The banks were pressuring them on this matter, arguing that they needed to be free to invest in information technology, defend themselves from financial technology, and compete with big technology and banks. American. Those arguments may have convinced the European political machine, but not us.

The Bank of England's plans come as the odds diminish that the European Union will grant parity status to UK regulations - dashing London's hope of restoring substantial access to European markets.

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The proposal would tighten rules for British banks against their European competitors and possibly reduce dividends.

shareholder payments have already been strictly defined by the regulators to ensure they maintain sufficient capital to absorb loan losses related to the Coronavirus and continue lending through the pandemic.

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