Delay in UK Implementation of Basel 3.1 to 1-Jan-2027
Today, the Prudential Regulation Authority (PRA), in consultation with HM Treasury, announced a one-year delay to the implementation of Basel 3.1 in UK. Earlier, it was schedule to take effect from 1-Jan-2026 for banks not classified as Small Domestic Deposit Taker (SDDT) firms.
The key highlights of the announcement:
New implementation date: The revised implementation date is 1-January-2027.
Firm Data Collection Exercise: The Basel 3.1 related firm data collection exercise has been paused, which ealier had a deadline on 31-March-2025
Interim Capital Regime TImelines: The time-frame to join the Interim Capital Regime (ICR) has been moved back and will be announced later, which was ealier set as 28-Feb-2025
Full implementation timelines unchanged: The overall full implementation timeline will still remain the same (1 January 2030), which would mean that the transition periods (where applicable) will be reduced
The delay aims to provide additional time to assess the United States' approach to implementing Basel 3.1 and aligns with recent UK Government messaging on economic growth priorities, as well as the PRA’s secondary objectives of promoting competitiveness and growth.
FCA Update
The FCA in their letter dated 16 January 2025, have also oulined their approach to aligining regulations with growth objectives. A key focus is on reducing the regulatory burden, which includes streamlining the rulebook and minimising the volume of data and reports banks are required to submit to regulators.
How We Can Help: Navigating Basel 3.1 and SDDT
Preparing for Basel 3.1 or aligning with the Strong and Simple Framework presents a variety of challenges. At Katalysys, we combine deep expertise in prudential regulatory requirements with practical implementation insights, specialising in support for small- and medium-sized banks.
We are currently assisting clients with:
Workshops and training tailored to specific needs.
Gap and impact analyses to identify readiness and areas for improvement.
Preparation for data collection exercises aligned with regulatory expectations.
Documenting or updating assumptions and interpretations in regulatory reporting.
Applications for permissions and modifications by consent to the PRA.
Integrating regulatory impacts into the ICAAP for comprehensive planning.
Reviewing regulatory returns, including post-implementation Basel 3.1 adjustments.
For more information or to discuss your requirements, please contact:
Josh Nowak
Managing Director, Risk & Regulatory Consulting
T: +44 (0)7587 720988
Manish Patidar
Director, Regulatory Consulting
T: +44 (0)7766 001 643