The Bank of England's Prudential Regulation Authority (PRA), in consultation with HM Treasury, has postponed the UK implementation of Basel 3.1 by one year to 1 January 2027, to allow more time for clarity on implementation plans in the United States. Basel 3.1 is the final set of post-crisis international banking reforms intended to improve banks’ measurement of risk and increase consistency and comparability of capital ratios. The PRA had previously published near-final rules in PS9/24 and moved the implementation date by six months to 1 January 2026, but has now decided on a further delay. Transitional periods will be shortened so that the date of full implementation remains 1 January 2030, consistent with the original proposals. In parallel, the PRA has paused with immediate effect its planned firm data collection exercise intended to inform an off-cycle review of firm-specific Pillar 2 capital requirements, which had been due by 31 March 2025. The end date of the window to join the Interim Capital Regime, previously set at 28 February 2025, will also be moved back, with further information to follow. The PRA will continue monitoring international developments.
Bank of England 2025-01-17
Bank of England's Prudential Regulation Authority delays UK Basel 3.1 implementation to 1 January 2027
The Bank of England's Prudential Regulation Authority, in consultation with HM Treasury, has delayed the UK implementation of Basel 3.1 by one year to 1 January 2027, to align with U.S. plans. The transitional periods will be shortened to maintain the full implementation date of 1 January 2030. Additionally, the PRA has paused its planned firm data collection exercise for reviewing firm-specific Pillar 2 capital requirements.