Bank of England Delays Capital Rules Amid Global Uncertainty

The Bank of England postpones tougher bank capital rules to 2027 due to uncertainties surrounding U.S. policies. This move prompts the EU to reconsider its own timeline. The reforms, designed to enhance global banking safety post-2008 crisis, face opposition, particularly from U.S. banks.

The Bank of England announced a postponement of stringent bank capital rules, extending the timeline by a year to January 2027. This decision seeks clarity on regulatory directions under former U.S. President Donald Trump and has influenced the EU to reassess its plans.

Originally set for implementation in January 2026, the EU remains committed to timely adoption, though the evolving circumstances in the U.S. and UK have prompted a strategic reevaluation. A spokesperson for the European Commission emphasized the necessity of implementing the standards promptly for everyone's benefit.

The delay by the BoE has surprised EU officials, given the UK's historical advocacy for high standards. John Cronin from SeaPoint Insights remarked that while EU policymakers have maintained strong positions, they will likely align with U.S. and UK strategies.

(With inputs from agencies.)