British Central Bank Postpones Basel Standards for a Year

The central bank of the United Kingdom is postponing the introduction of stricter capital requirements for banks for a year until 1 January 2027.

According to the Bank of England, it is better to introduce the new rules later because there will be more clarity about the United States steps in this area.

This concerns the introduction of Basel 3.1 standards, the latest requirements that the Basel Committee on Banking Supervision proposes to increase the banking sector’s stability.

The Basel Committee on Banking Supervision developed these new standards after the 2008 financial crisis in the banking sector.

The new Basel standards that the British are now postponing should make comparing banks’ capital buffers easier. However, widespread opposition to stricter banking rules in the United States creates uncertainty about how the vast US financial sector will respond to the committee’s proposals.