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COREP Guidance COREP Terms & Definitions CONTACT US What is Amortization?

What is Amortisation?

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What is Amortization?

Very few assets last indefinitely, often decreasing in value over time or as a result of use.

Amortisation applies to intangible assets  (ineligible capital instruments and subordinated loans) and is the proportional decrease in value, or spreading the cost of an asset over the course of time, such as the asset’s useful life.