Basel III13 Dec 2023 09:47
The Bank of England said on Tuesday that implementing the final leg of the global Basel bank rules will increase capital requirements at UK banks by 3%, far less than for their European Union and U.S. peers.
Britain, the EU, U.S. and other countries are now finalising how they will implement the final leg of the so-called Basel III capital standards, tailoring them to local circumstances.
The BoE said it estimates the impact of the final leg of Basel on UK banks will be "low" at an average increase in Tier 1 capital of about 3.2% once fully phased in by January 2030, down from an estimated 6% increase last year as data is refined.
"This is lower than the European Banking Authority’s estimate of a Tier 1 increase of around 10% in the EU and the US agencies’ estimate of a CET 1 increase of around 16% for US firms," the BoE said.
Looking like UK banks are fully capitalised, unlike our European and US counterparts.
But I guess we all know that, well except for the usual deniers. You know who you are.