Financial News: BoE Softens Capital Regime For Banks

BoE Softens Capital Regime For Banks

09/12/2024 - 08:48:00 (RTTNews)

(RTTNews) - The Bank of England said the capital threshold for major UK banks will be virtually unchanged, and delayed the implementation date for the new Basel standards by another six months as regulators bowed down to heavy lobbying.

The Prudential Regulation Authority estimated that the tier 1 capital requirements for major banks will increase by less than 1 percent from January 2030. This was a reduction from a 3 percent increase estimated previously.

The BoE backed the proposal to descope the Small Domestic Deposit Takers from the countercyclical capital buffer and capital conservation buffer.

The bank said the new Single Capital Buffer will simplify the capital regime for SDDT firms, while maintaining the level of resilience by keeping capital requirements and buffers.

Further, the PRA decided to move the implementation data for the Basel 3.1 standards by further six months to January 1, 2026.

PRA Deputy Governor Sam Woods said "These rules will improve the way in which we regulate the banks in order to maintain safety and soundness and wider financial stability."

Woods added that it will support growth and competitiveness, while ensuring that the UK aligns with international standards.

Ahead of a joint meeting with the Bank of England Governor Andrew Bailey and CEO's of the UK's largest banks and building societies, Chancellor of the Exchequer Rachel Reeves said today's proposals by the PRA mark the end of a long road after the 2008 financial crisis.

Reeves said, "These reforms will strengthen the resilience of our banking system and deliver the certainty banks need to finance investment and growth in the UK."

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Index Unexpectedly Decreases In October (06 hr(s), 01 min(s), 56 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed an unexpected deterio ...Full Story»

U.S. Producer Prices Unexpectedly Flat In September, Annual Growth Slows Modestly (06 hr(s), 25 min(s), 56 sec(s) ago)
(RTTNews) - With a decrease in prices for goods offsetting an increase in prices for services, the ...Full Story»

U.S. Producer Prices Unexpectedly Unchanged In September (08 hr(s), 10 min(s), 56 sec(s) ago)
(RTTNews) - With a decrease in prices for goods offsetting an increase in prices for services, the ...Full Story»

India Industrial Output Shrinks 0.1% In August (08 hr(s), 13 min(s), 56 sec(s) ago)
(RTTNews) - India's industrial production declined slightly in August, largely led by weaker m ...Full Story»

Turkey Retail Sales Growth Strongest In 5 Months (11 hr(s), 07 min(s), 56 sec(s) ago)
(RTTNews) - Turkey's retail sales increased at the quickest pace in five months in August, the ...Full Story»

Romania Inflation Eases To 4.6%, Lowest In Over 3 Years (12 hr(s), 01 min(s), 56 sec(s) ago)
(RTTNews) - Romania's consumer price inflation moderated further in September to the lowest le ...Full Story»

UK Economy Returns To Growth (12 hr(s), 22 min(s), 56 sec(s) ago)
(RTTNews) - The UK economy returned to growth in August but the pace of expansion was weaker than ...Full Story»

Swiss Consumers Less Pessimistic In September (12 hr(s), 44 min(s), 56 sec(s) ago)
(RTTNews) - Confidence among Swiss consumers remained less negative in August, survey results from ...Full Story»