UK PRA announces Basel delay to Jan 1 2027

The UK’s Prudential Regulation Authority (PRA), in consultation with HM Treasury, has decided to delay the implementation of Basel 3.1 in the UK by one year until 1 January 2027. This allows more time for greater clarity to emerge about plans for its implementation in the US given the current uncertainty.

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, standardizing approaches between firms to make their capital ratios more consistent and comparable.

“We now expect to implement on 1 January 2027, but will continue to monitor developments,” the PRA wrote in a statement. In line with the approach taken for the six-month delay in PS9/24, 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.

As part of the preparatory work to implement Basel 3.1, the PRA had indicated that it would conduct a firm data collection exercise to inform an off-cycle review of firm-specific Pillar 2 capital requirements so that they could be updated at the same time as the implementation of Basel 3.1 standards. The stated deadline for firms to submit the data for the collection exercise was 31 March 2025.

“In light of the delay to implementation, we are immediately pausing this data collection exercise until further notice,” the PRA said in the statement. “Also in light of the delay to implementation, the end-date of the time-window to join the Interim Capital Regime – previously set as 28 February 2025 – will be moved back. The PRA will provide further information in due course.”

Read the full release

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