Bank of England Delays Tougher Capital Requirements to 2027

The Bank of England announced a one-year delay in implementing stricter capital requirements until January 2027. This decision follows pushback from U.S. banks against the Basel Committee's global standards. The delay shifts attention to the EU, where implementation is set for January 2026.

The Bank of England has announced a postponement in the implementation of more stringent bank capital requirements, rescheduling it for January 2027. This move comes amid criticism from U.S. banks regarding the global Basel Committee's standards aimed at safeguarding the banking system post the 2008 financial crisis.

The delay by Britain leaves eyes on the European Union, where the new rules are to be enforced by January 2026, creating a one-year gap. While the EU has yet to comment, Britain's announcement has seen modest gains in the shares of British banks, with firms like Barclays and Lloyds seeing small increases following the news.

The British Labour government, emphasizing growth, has urged regulators to be growth-friendly. Finance officials state that the delay allows time for clarity around the U.S. stance on the issue. The decision aligns with competitiveness and growth, Bank of England's Prudential Regulation Authority noted.

(With inputs from agencies.)