MNI BRIEF: UK To Delay Implementation of Basel 3.1 Until 2027
MNI (LONDON) - The UK's Prudential Regulation Authority, after consultation with HM Treasury, said Friday it has decided to delay the implementation of Basel 3.1 in the UK by one year until 1 January 2027.
This, the PRA said, will allow more time for greater clarity to emerge about plans for its implementation in the United States. Basel 3.1 is the final set of international banking reforms designed in response to the 2008
global financial crisis. It is designed to improve banks’ own measurement of risk, standardising approaches between firms to make their capital ratios more consistent and
comparable.
Given the current uncertainty around the timing of implementation of the Basel 3.1 standards in the US, and taking into account competitiveness and growth considerations,
the PRA, having consulted with HM Treasury, has decided to further delay implementation of the rules. We now expect to implement on 1 January 2027, but will continue to monitor
developments. The transitional periods in the rules will be reduced to ensure the date of full implementation remains at 1 January 2030, as set out in the original proposals, the PRA said.