The Prudential Regulation Authority has announced it will release a Consultation Paper on the remaining elements of Basel III to be implemented, in Q4 of 2022.
The Prudential Regulation Authority has announced it will publish a Consultation Paper on the implementation of the remaining elements of Basel III (Basel 3.1) in the UK, in the fourth quarter of 2022.
Basel 3.1 is the final package of prudential reforms for banks, and has been developed in response to the financial crisis of 2008/9 to change the way firms calculate Risk Weighted Assets.
The announcement comes following a delay agreed internationally due to the impact of Covid-19, and because of the additional work undertaken by the PRA to incorporate Basel standards into a UK legal framework.
To give firms sufficient time to implement the Basel 3.1 changes, the PRA currently proposes that these take effect on 1 January 2025, and will consult on this proposal accordingly.