Bank of England delays final Basel bank capital rules to July 2025

LONDON (Reuters) – The Bank of England on Wednesday said it would delay by six months to July 2025 its roll out of the final leg of international bank capital rules that began after the global financial crisis over a decade ago.

The BoE had indicated along with the European Union, that it would start implementing the rules, which were set out by the global Basel Committee of banking regulators, from January 2025.

Instead, the BoE has decided to move in line with the United States, where the Federal Reserve has said it would start its roll out in July 2025.

The BoE said it also intends to cut the transitional period for full implementation to 4.5 years to ensure full implementation by 1 January 2030.

The Bank has already held a public consultation on its proposals to implement the Basel rules and had been expected to issue final rules sometime in 2024.

It has now changed its timetable.

“In Q4 2023, we intend to publish the near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk,” it said in a statement.

“In Q2 2024, we intend to publish the near-final policies on the remaining elements… credit risk, the output floor, and reporting and disclosure requirements.”

(Reporting by Huw Jones; editing by David Milliken and William James)