Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 11 30T074707Z 1 LYNXMPEIAT0B7 RTROPTP 4 BRITAIN BOE QE - Business Express
FILE PHOTO: A general view of the Bank of England building, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska

Bank of England consults on remaining Basel bank capital rules


LONDON (Reuters) – The Bank of England confirmed on Wednesday that the rollout of remaining global bank capital rules would start in January 2025, with smaller lenders not required to apply them.

Known as Basel III, the rules were agreed globally after taxpayers had to bail out undercapitalised lenders in the global financial crisis over a decade ago.

The BoE said it does not expected its proposals to implement the remaining Basel rules to “significantly increase overall capital requirements on average across UK firms”.

“Alignment with strong international banking standards promotes economic growth by underpinning the competitiveness of the UK as a financial centre,” BoE Deputy Governor Sam Woods said in a statement.

“Our proposals for implementing the latest Basel standards, with appropriate but limited adjustments for the UK market, aim to deliver these goals.”

This contrasts with the European Union where several, albeit temporary, deviations from Basel are being proposed for the same start date as Britain.

The Bank proposed introducing the changes on January 1, 2025 – two years later than agreed globally – with transitional arrangements that give firms significant time to adjust to the new framework.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

The BoE had already set out separate plans for a “strong and simple” capital regime for Britain’s smaller banks, and on Wednesday said these were being revised.

It proposed that banks who comply with the new simpler regime criteria would not have to apply the remaining Basel III rules for calculating capital buffers.

The Bank intends to consult in early 2023 on the first batch of measures that will apply to banks that come under the simpler regime.

 

(Reporting by Huw Jones, editing by Andy Bruce)

 

Recent Post: