UK to delay implementing global banking reforms

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The Bank of England will delay implementing the latest package of global post-crisis banking reforms for another six months, aligning its approach with the US as officials wade through an avalanche of industry feedback.

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25 Sep 2023

The new rules, part of the broader Basel III reforms, are global policymakers’ final effort to insulate the banking industry against the excessive risk-taking that culminated in the financial crisis of 2007-08.

The package includes limiting banks’ ability to decide how much capital they need to back certain loans and trades — measures that generally increase banks’ costs, though the BoE has said that is not the objective.

The BoE is preparing to unveil a July 2025 implementation deadline in the coming weeks, in line with the July 2025 date announced by the US over the summer, several people briefed on the plans told the FT.

The rules were to set to come into force in January 2025, after years of delays from the initial target of January 2021.

The BoE declined to comment.

UK-based banks have pushed back against some of