New rules for banks to deliver financial stability and investment
New rules for banks and building societies announced today will ensure the UK financial system is resilient, competitive and promotes investment in the UK economy.바카라 사이트�
The Basel 3.1 reforms are the final part of the internationally agreed Basel 3 framework. Today바카라 사이트檚 proposals, announced by the Prudential Regulation Authority (PRA), mark the end of the post-2008 crisis capital reforms and give the certainty industry will need to invest for growth.바카라 사이트�
Chancellor of the Exchequer Rachel Reeves welcomed the reforms, saying they would deliver certainty for the banking sector to 바카라 사이트渇inance investment and growth in the UK바카라 사이트� ahead of a joint meeting with the Bank of England Governor to discuss them with CEOs of the UK바카라 사이트檚 largest banks and building societies in No11 Downing Street.바카라 사이트�
Chancellor of the Exchequer Rachel Reeves said:바카라 사이트�
Today marks the end of a long road after the 2008 financial crisis.바카라 사이트�
Britain바카라 사이트檚 banks have a vital role to play in helping businesses to grow, getting infrastructure built and supporting ordinary peoples바카라 사이트� finances.바카라 사이트�
These reforms will strengthen the resilience of our banking system and deliver the certainty banks need to finance investment and growth in the UK.바카라 사이트�바카라 사이트�
Economic Secretary to the Treasury Tulip Siddiq said:바카라 사이트�
These new rules bring the UK in line with international standards while supporting the dynamism of the UK economy.바카라 사이트�
This is a balanced package that promotes the competitiveness of the UK banking system as well as economic growth.바카라 사이트�바카라 사이트�
The PRA바카라 사이트檚 new rules, including those already announced in December 2023, have both financial resilience and growth at their core, reflecting an increased focus on growth and competitiveness.聽 聽
Banks and building societies will have to maintain sufficient capital against risks, such as loans not being repaid, to protect people and businesses from the fallout from a 2008-style financial crash.聽
The PRA바카라 사이트檚 near-final rules also include a number of changes from its initial proposals that will support economic growth and competitiveness. The key changes made by the PRA will:聽
- Lower its proposed capital requirements for lending to small and medium-sized businesses (SMEs). This will mean lending to SMEs continues to be supported, helping to deliver the government바카라 사이트檚 ambition to make the UK the best place in the world to start and grow a business.聽聽
- Lower its proposed capital requirements for infrastructure projects, ensuring no increase on current requirements and supporting the UK바카라 사이트檚 transition to net zero.바카라 사이트�
- Streamline the approach banks can take to mortgage lending, by simplifying the approach to valuing residential property.聽
The PRA바카라 사이트檚 new rules will come into force on 1 January 2026, providing the banking sector with the certainty it needs to prepare for the new requirements. The Treasury will repeal the legislation required for the PRA to move forward with the Basel 3.1 package.바카라 사이트�
The PRA published proposals for a simpler regime for smaller firms alongside its near-final Basel 3.1 rules. This regime will make it easier for smaller banks and building societies to lend by minimising the number of calculations they are required to make and introducing a single capital buffer.