In a statement released on Wednesday (Sep 27), the Bank of England (BoE) said it would delay the final leg of Basel bank capital rules by six months to July 2025.

The BoE had previously indicated that it would start implementing the international rules, which were first set out by the Basel Committee following the 2008 financial crisis, from January 2025.

Instead, the BoE has decided to move in line with the United States, where the Federal Reserve will start its rollout in July 2025.

The BoE said it also intends to cut the transitional period to 4.5 years to ensure full implementation by 1 January 2030.

The Bank has already held a public consultation on its proposals to implement the Basel rules and had been expected to issue final rules in 2024.

"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... credit risk, the output floor, and reporting and disclosure requirements."

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