The UK Prudential Regulation Authority (PRA) has pushed back the implementation date for the final phase of Basel III reforms in the UK by six months to 1 July 2025.
With this announcement, the PRA will compress the transition period for the final Basel 3.1 policies to 4.5 years to deliver full implementation by 1 January 2030 in line with plans outlined in its November 2022 consultation paper CP 16/22.
The revised timetable responds to industry responses forwarded during the CP 16/22 consultation period which closed on 31 March.
To digest industry consultation responses relating to the credit risk and output floor proposals detailed in CP 16/22, the PRA will release its ‘near-final’ Basel 3.1 outline in two parts.
It will release its near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk in Q4 2023.
In Q2 2024, it will then publish remaining elements from its CP16/22 proposals, delivering ‘near-final’ plans for credit risk, the output floor and reporting and disclosure requirements.
For a comparative evaluation of Basel III Endgame proposals in the US and other jurisdictions, refer to SFT 336, p. 24ff.
