News release
In 2021, the PRA published two policy statementsfootnote [1] footnote [2] covering a number of the internationally-agreed Basel III standards that remained to be implemented in the UK.
Since then, we have continued to develop proposals to implement all of the remaining elements of Basel III (“Basel 3.1”). Basel 3.1 is the final package of banking prudential reforms developed in response to the 2008/09 financial crisis. It is an important and comprehensive package of measures that will make significant changes to the way firms calculate Risk Weighted Assets.
The timing of our work on Basel 3.1 had been uncertain for a number of reasons, including the internationally agreed delay as part of the response to Covid-19, the need to respond to other priorities and the new processes that the PRA has had to develop to turn Basel standards into detailed rule-making proposals under a UK legal framework.
To support firms in their planning processes, we are today providing additional clarity on our intended timetable. We can confirm that we intend to publish a Consultation Paper on Basel 3.1 implementation in the fourth quarter of 2022.
In addition, taking into account the publicly-announced implementation timetables in other major jurisdictions, and the need to provide firms with sufficient time to implement the final policies, our current intention is to consult on a proposal that these changes will become effective on 1 January 2025.