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The Bank of England is poised to announce in the coming days a delay in the next phase of bank capital reforms, pushing the implementation date to January 2026 at the earliest, Bloomberg reported Thursday, citing people familiar with the matter.
The delay comes as the U.S. has yet to finalize its own package. The so-called Basell III Endgame proposal initially would have boosted banks’ capital requirements by 16%, a move that lenders didn’t take lightly. But regulators have been working for months to reach a consensus on revised proposals for the rule, but have yet to present them.
Other major banking jurisdictions, including the European Union and Canada, also have announced delays to key parts of their packages.
The U.K., meanwhile, has postponed the entire reform package because the mid-May general election placed regulators in a “quiet period,” which hindered them from issuing the detailed rules in time to provide banks with the full year’s notice needed for the changes, the people told Bloomberg.
The BOE has already adjusted its timeline to match the June 2025 schedule that the U.S. set in 2023, the article said.
U.K. lenders Barclays (NYSE:BCS) +0.9%, Standard Chartered (OTCPK:SCBFF) +4.3%, NatWest Group (NYSE:NWG) +0.7% and Lloyds Banking Group (NYSE:LYG) +0.5% all changed hands in the green in Thursday morning trading in the U.S. HSBC Holdings (NYSE:HSBC) stock was roughly flat.
