Bank of England Postpones Global Capital Rule Implementation

The Bank of England announced a one-year delay until January 2027 for tougher global bank capital requirements, known as Basel 3.1. The decision, in consultation with Britain's Treasury, seeks further clarity on the United States' implementation plans, following resistance from U.S. banks regarding the regulations.

The Bank of England has announced a postponement of the implementation of stricter global bank capital rules, deferring the deadline by a year to January 2027. This decision was reached in consultation with the UK's Treasury.

The updated timeline for the Basel 3.1 financial regulations was disclosed by the Bank of England's Prudential Regulation Authority (PRA), with the aim of gaining more insights into how these rules will be enacted in the United States.

The delay follows criticism from American banks, which argue that the regulations are excessively burdensome. Basel 3.1 was developed by the global Basel Committee, and countries including the UK, US, and the EU are tailoring these standards into their national regulations.

(With inputs from agencies.)