The Bank of England is reported by the Financial Times to be pushing back its rollout of Basel III from January 2025 to July 2025.

Basel III will increase large banks’ capital requirements for a number of loan, derivative and other exposures. A push back in its implementation may therefore support credit prices.

The original rollout of Basel III was supposed to be January 2021. Given the complexity of the regulations and the pushback from the industry, we may see further postponements beyond July 2025.

The implementation of Basel III rules differs by jurisdiction – with the EU seen as taking a lighter position than the UK and US. UK and US banks have been complaining that this could put them at a disadvantage to EU competitors – including in extending credit.