BoE to delay global banking reform implementation but shorten phase-in period - reports
The Bank of England is also set to shorten the five-year phase-in period by six months and delay finalising certain rules.
According to reports from the FT, the BoE is preparing to reveal a July 2025 implementation deadline over the coming weeks, a shift from the previous target date of January 2025.
However, the Bank is also set to shorten the five-year phase-in period by six months and delay finalising certain rules.
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This move also pushes the UK out of sync with the EU, which maintains its January 2025 deadline, although a senior EU regulator told the FT that while the bloc could still extend its implementation, it is «not such a big deal», given the EU has a longer phase-in period for the rules.
While the BoE has promised to produce «near-final» rules on its Basel III package by the end of the year, officials have reportedly told banks the volume of consultation responses received has put this target at risk of being missed.
As such, the «near-final» rules are expected only on the most complex market and trading areas by December, with the remaining set to be published by May 2024.
Lee Doyle, co-chair of the banking sector at Ashurst, said: «Reflection on industry feedback and greater global alignment must be considered a good thing, however, it is also important that some momentum is maintained in clarifying what the final proposals will be. After too long a pause the worst scenario is continued delay and uncertainty.»
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