UK regulators push back final phase of Basel III reforms
27 September 2023 UK
Image: AdobeStock/lexiconimages
The UK Prudential Regulation Authority (PRA) has pushed back the implementation date for the final phase of Basel III reforms in the UK by six months to 1 July 2025.
With this announcement, the PRA will compress the transition period for the final Basel 3.1 policies to 4.5 years to deliver full implementation by 1 January 2030 in line with plans outlined in its November 2022 consultation paper CP 16/22.
The revised timetable responds to industry responses forwarded during the CP 16/22 consultation period which closed on 31 March.
To digest industry consultation responses relating to the credit risk and output floor proposals detailed in CP 16/22, the PRA will release its ‘near-final’ Basel 3.1 outline in two parts.
It will release its near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk in Q4 2023.
In Q2 2024, it will then publish remaining elements from its CP16/22 proposals, delivering ‘near-final’ plans for credit risk, the output floor and reporting and disclosure requirements.
For a comparative evaluation of Basel III Endgame proposals in the US and other jurisdictions, refer to SFT 336, p. 24ff.
With this announcement, the PRA will compress the transition period for the final Basel 3.1 policies to 4.5 years to deliver full implementation by 1 January 2030 in line with plans outlined in its November 2022 consultation paper CP 16/22.
The revised timetable responds to industry responses forwarded during the CP 16/22 consultation period which closed on 31 March.
To digest industry consultation responses relating to the credit risk and output floor proposals detailed in CP 16/22, the PRA will release its ‘near-final’ Basel 3.1 outline in two parts.
It will release its near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk in Q4 2023.
In Q2 2024, it will then publish remaining elements from its CP16/22 proposals, delivering ‘near-final’ plans for credit risk, the output floor and reporting and disclosure requirements.
For a comparative evaluation of Basel III Endgame proposals in the US and other jurisdictions, refer to SFT 336, p. 24ff.
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