UK lenders face smaller impact from Basel rules than rivals, BoE says

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.

Regulators began rolling out the tougher capital rules after the global financial crisis of 2007-09 when taxpayers had to rescue ailing banks.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 published on Tuesday the first of two “near final” policy statements on implementing the Basel rules, saying it had made some tweaks to its original proposals following a public consultation.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% once fully phased in by January 2030.

via Reuters