Bank of England Delays Basel 3.1 Capital Rules to 2027

The decision follows uncertainty over U.S. implementation and aims to balance competitiveness and growth concerns.

The Bank of England has postponed the implementation of Basel 3.1 banking capital rules by one year, now set for January 2027.
This marks the second delay, following a six-month postponement in September 2024, attributed to uncertainty about U.S. regulatory timelines.
The Basel 3.1 standards are designed to strengthen global banking systems by requiring higher capital reserves based on risk assessments.
The delay has been supported by UK banks, citing the need for international coordination, but criticized by advocates for stricter financial safeguards.
The decision reflects broader government priorities, with the Treasury emphasizing economic growth and competitiveness in regulatory decisions.