World News

Britain says Basel bank rule delay will aid response to coronavirus

LONDON (Reuters) – Delaying remaining elements of new global bank capital rules for a year will give lenders in Britain time to focus on dealing with fallout from the coronavirus epidemic, the Bank of England and Britain’s finance ministry said on Thursday.

The Basel Committee of banking regulators from across the world agreed to the one-year delay to 2023 last week.

“This will provide operational capacity for banks and supervisors to respond to the immediate financial stability priorities from the impact of Covid-19,” the BoE’s Prudential Regulation Authority (PRA) and finance ministry said in a joint statement.

The PRA and finance ministry said they were committed to the full, timely and consistent implementation of the new rules and “we will work together towards a UK implementation timetable that is consistent with the one year delay”.

(Reporting by Huw Jones; Editing by Dhara Ranasinghe)