UK regulators delay new banking rules ahead of Trump presidency

Open Editor’s Digest for free

FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.

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.

The announcement BoE:On Friday, the Prudential Regulation Authority, which will delay the start of a tighter capital regime in Britain until January 2027, underscores how regulators around the world are watching nervously to see what impact Trump will have on financial regulation.

The Basel III regime was first established more than a decade ago to increase the amount of capital available to absorb stress in banks and avoid a repeat of the bailouts that followed the 2008 financial crisis.

The PRA already said last year that it was amending the so-called Basel 3.1 rules to reduce the additional capital required. British banks and postpone the implementation until January 2026.

The US Federal Reserve also scaled back its plans to implement its so-called “Basel endgame rules”. American banks after heavy industry lobbying. The regulations are expected to be further relaxed or even repealed under the Trump administration.

“Given the uncertainty around the timing of the implementation of Basel 3.1 standards in the US and taking into account competitiveness and growth considerations, the PRA, in consultation with HM Treasury, has decided to further delay the implementation of the rules.”

UK bank shares rose at the open on Friday morning, with Barclays up 1.7 percent, Lloyds up 1.2 percent and NatWest up 1 percent.