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The Bank of England has delayed the launch of new capital rules for British banks by a year, waiting to see how the incoming Trump administration will implement the global Basel accord in the US.
The ad in BoeThe prudential regulator said on Friday it would postpone the start of a tighter capital regime in the UK until January 2027 as regulators around the world watch with trepidation over Trump’s impact on financial regulation.
The Basel III regime was first drafted a decade ago to increase the level of equity available to alleviate stress in banks and avoid government bailouts that followed the 2008 financial crisis.
The PRA said last year that it was revising Basel 3.1 rules to reduce the need for additional capital. British banks And to delay the implementation until January 2026.
The US Federal Reserve has scrapped plans to implement the Basel Endgame rule. American banks After heavy lobbying by the sector. The regulations are expected to be further diluted or abandoned by the Trump administration.
In a statement, the PRA said: “Given the current uncertainty around the implementation of the Basel 3.1 standards in the US and the competitiveness and growth issues, the PRA has decided, in consultation with HM Treasury, to further delay it. Applying the Rules”.
