The UK Prudential Regulatory Authority (PRA) has decided to postpone the implementation of Basel 3.1 by one year, now set to begin on January 1, 2027. This decision was made in consultation with HM Treasury and is intended to allow more time for clarity on the final Basel 3 reforms in the United States. The PRA explained that this choice takes into account "competitiveness and growth considerations" related to uncertainties in the US concerning the final Basel rules.

Basel 3.1 represents a comprehensive set of international banking reforms developed in response to the global financial crisis of 2008. These reforms aim to enhance risk measurement at banks, standardizing methods between firms to ensure their capital ratios are more consistent and comparable. The delay also reduces transitional periods within these rules, as full implementation is still expected by January 1, 2030, according to PS9/24. Additionally, this postponement affects the timeline for joining the Interim Capital Regime, initially scheduled to end on February 28, 2025. The PRA will announce a new deadline soon.

In September 2024, the PRA released Policy Statement 9/24 (PS9/24), outlining near-final rules for integrating Basel 3.1 into its Rulebook. This statement also noted that an off-cycle review of firm-specific Pillar 2 capital requirements would be conducted. Firms were originally required to submit data for this collection exercise by March 31, 2025; however, the PRA has decided to pause this exercise until further notice so that these requirements can be updated alongside Basel 3.1 standards.

The decision reflects a cautious approach by the PRA aimed at ensuring that the financial sector is adequately prepared for new regulatory frameworks. By aligning with international developments, the PRA seeks to maintain stability and consistency within the regulatory environment.