The Bank of England announced that it’s providing additional clarity on its intended timetable for Basel III implementation. In Q4 2022, there will be a consultation paper with the intention that the changes will become effective on 1 January 2025.
Basel 3.1 is the final package of banking prudential reforms developed in response to the 2008/09 financial crisis. It is an important and comprehensive package of measures that will make significant changes to the way firms calculate Risk Weighted Assets.
“The timing of our work on Basel 3.1 had been uncertain for a number of reasons, including the internationally agreed delay as part of the response to Covid-19, the need to respond to other priorities and the new processes that the PRA [Prudential Regulation Authority] has had to develop to turn Basel standards into detailed rule-making proposals under a UK legal framework,” the Bank of England said in a statement.