The Prudential Regulation Authority (PRA) has announced a one-year delay to the implementation of the Basel 3.1 framework in the UK. The new implementation date is 1 January 2027, giving firms more time to prepare and allowing for greater clarity on how the rules will be adopted in the United States.
Basel 3.1 is the final set of international banking reforms developed in response to the 2008 financial crisis (and implemented in the UK). It focuses on improving how banks measure risk and standardizing practices across the industry, making capital ratios more consistent and comparable.
Why the delay?
The PRA cited continued uncertainty around the US timeline for Basel 3.1 implementation as a key reason for the delay. In making this decision, the regulator also considered the competitiveness and growth of the UK’s banking sector.
Key takeaways for firms
Here’s what the delay means:
- New implementation timeline: Basel 3.1 will now take effect on 1 January 2027, but the deadline for full compliance remains 1 January 2030.
- Transitional periods will be adjusted to meet this target. Paused data collection: The PRA’s planned Pillar 2 capital requirement data collection exercise, originally due by 31 March 2025, is now on hold until further notice.
- Changes to the Interim Capital Regime: The deadline to join the Interim Capital Regime will also be extended. The PRA has said further details will follow soon.
How Wolters Kluwer OneSumX can help
While the delay provides more time, it also brings questions about how best to stay on track. At Wolters Kluwer, we understand these challenges and are here to help you navigate them with confidence. Our OneSumX solutions are built to adapt to evolving regulations, giving you the tools you need to prepare for Basel 3.1 and beyond.
Learn how OneSumX for Basel can support your goals.
