News release
In November 2022, the Prudential Regulation Authority (PRA) published consultation paper (CP) 16/22 – Implementation of the Basel 3.1 standards, setting out proposals for PRA rules covering the remaining elements of the Basel III standards that are yet to be implemented in the UK. The consultation period ended on 31 March 2023. Since then, we have been considering the feedback we have received.
To support firms in their planning processes, we are today announcing two updates on our intended timetable to complete our work and implement the Basel 3.1 standards in the UK.
First, we intend to move the implementation date of the final Basel 3.1 policies by six months to 1 July 2025. We intend to reduce the transitional period to 4.5 years to ensure full implementation by 1 January 2030 in line with the proposals set out in CP16/22.
Second, to allow appropriate time to fully consider the responses to the credit risk and output floor proposals in CP16/22 without delaying publication of rules on the other parts of the package, we intend to split publication of our near-final Basel 3.1 policy statements into two:
- In Q4 2023, we intend to publish the near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk.
- In Q2 2024, we intend to publish the near-final policies on the remaining elements from CP16/22: credit risk, the output floor, and reporting and disclosure requirements.
Notes to editors
- Consultation paper (CP) 16/22 – Implementation of the Basel 3.1 standards:
30 November 2022 - The PRA refers to the Basel III standards that remain to be implemented in the UK as Basel 3.1 standards