UK regulators delay new banking rules ahead of Trump presidency

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The Bank of England has delayed the start of new capital rules for British banks by a year while it waits to see how the incoming Trump administration will implement the global Basel Accord in the US.

Advertisement from Bank of EnglandThe Prudential Regulation Authority’s Prudential Regulation Authority confirms on Friday that it will delay the start of the UK’s tougher capital regime until January 2027, as regulators around the world are nervously watching to see what impact Trump will have on financial regulation.

Basel III was first put in place more than a decade ago to increase the amount of equity available to absorb stresses at banks and avoid a repeat of the government bailouts that followed the 2008 financial crisis.

The Financial Supervisory Authority had already said last year that it was amending the so-called Basel 3.1 rules to reduce the additional capital required for companies. British banks Implementation was postponed until January 2026.

The US Federal Reserve has also eased its plans to implement the so-called Basel end-game rules American banks After intense pressure from the sector. Regulations are expected to be further relaxed or even abandoned under the Trump administration.

The Risk Analysis Authority said in a statement: “Given the current uncertainty regarding the timing of the implementation of Basel 3.1 standards in the United States, and taking into account competitiveness and growth considerations, the Risk Analysis Authority, after consultation with the British Treasury, decided to continue the postponement.” Enforce the rules.”

British banking shares rose at the open on Friday morning, with Barclays up 1.7 per cent, Lloyds up 1.2 per cent and NatWest up 1 per cent.