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RegulationSeptember 12 2024

Explainer: What changes to Basel 3.1 mean for UK banks

New standards on liquidity and capital come after EU delays and significant revisions in the US
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Explainer: What changes to Basel 3.1 mean for UK banks© Jose Sarmento Matos/Bloomberg

The UK has followed the US in easing capital requirements for lenders under the Basel III regime. 

The Prudential Regulation Authority on Thursday morning announced a six-month delay to the implementation of Basel 3.1 standards, with significantly lower capital requirements for small and medium-sized enterprises, trade finance and infrastructure lending.

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