On 27 September 2023, the Prudential Regulation Authority (PRA) announced two updates on its proposed timings for Basel 3.1 implementation in the UK.

The PRA’s proposals for rules covering the remaining Basel III standards that are yet to be implemented in the UK were set out in Consultation Paper 16/22 (CP16/22), published in November 2022.

Having considered the feedback it received, the PRA intends to move the implementation date of the final Basel 3.1 policies by six months to 1 July 2025, and to reduce the transitional period to 4.5 years to ensure full implementation by 1 January 2030 in line with the proposals set out in CP16/22.

Furthermore, to allow appropriate time to fully consider the responses to the credit risk and output floor proposals in CP16/22 without delaying publication of rules on the other parts of the package, the PRA intends to split the publication of its near-final Basel 3.1 policy statements into two:

  • In Q4 2023, it plans to publish the near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk and operational risk.
  • In Q2 2024, it intends to publish near-final policies on the remaining elements from CP16/22: credit risk, the output floor, and reporting and disclosure requirements.