Kelvin Jay
The Bank of England is expected to announce within days that it will delay the next stage of its bank capital reforms, pushing back the implementation date to January 2026 at the earliest, Bloomberg reported on Thursday, citing people familiar with the matter.
The delay comes as the U.S. has yet to finalize its own proposed rules. The so-called “Basel III endgame” proposal initially would have raised capital requirements for banks by 16%, which financial institutions did not take lightly. But regulators have been working for months to reach an agreement on proposed revisions to the rules, which have yet to be presented.
Other major banking jurisdictions, including the European Union and Canada, have also announced delays to key parts of their support packages.
Britain, meanwhile, has delayed its entire reform package because a general election in mid-May meant regulators entered a “quiet period” and were unable to publish detailed rules in time to give banks the one-year notice they need to make changes, people familiar with the matter told Bloomberg.
The BOE has already adjusted its timeline to match the U.S.’s 2023 deadline of June 2025, the article said. said.
British financial institution BarclaysNYSE:BCS) +0.9%Standard Chartered (OTCPK:SCBFF) +4.3%NatWest Group (NYSE:NWG) +0.7% and Lloyds Banking Group (NYSE:LYG) +0.5% HSBC Holdings of the United StatesNYSE:HSBC) Stock prices were roughly flat.
