The UK complies with the EU on Basel Bank capital rules

FILE PHOTO: People outside the Bank of England in the City of London, Britain, January 23, 2022. REUTERS/Henry Nichols

LONDON (Reuters) – The Bank of England said on Monday it plans to apply a final set of capital requirements to banks after the financial crisis from January 2025, bringing Britain into line with the European Union in a measure that banks will do. welcome.

Strict bank capital reforms were agreed globally after banks were bailed out in crisis by taxpayers.

Banks already have much more capital under the initial elements of the “Basel III agreement”, the final elements of which were due to enter into force in January of this year, but have been delayed by a year until January 2023 due to COVID-19. .

However, the EU decided to propose delaying implementation for another two years, until January 2025, to give banks more time to adjust, forcing the UK and other jurisdictions to decide whether to follow suit.

The Bank of England (BoE) said it will publish an advisory paper in the fourth quarter on the implementation of the final Basel III rules.

“Furthermore, given the publicly announced implementation schedules in other key jurisdictions, and the need to give businesses sufficient time to implement final policies, our current intention is to consult on a proposal for these changes to become effective on 1 January 2025,” the Bank of England said in a statement. Monday.

(Reporting by David Milliken and Hugh Jones; Editing by Kylie McClellan and Ed Osmond; Translated by Flora Gomez)

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