Bank of England to ease rules for smaller and mid-sized banks
The Bank said its Prudential Regulation Authority (PRA) has pushed back the start of a new internal model approach for considering risk in the market by a year to January 1 2028.
It said the latest proposals will allow time 'for greater clarity to emerge in other jurisdictions' amid uncertainty how President Trump will implement the global Basel rules in the US.
The Basel 3 regime was first drawn up in the aftermath of the financial crisis to increase the amount of equity available to absorb stress from banks in an effort to avoid future state bailouts.
The Bank of England said it will continue with plans to launch the majority of its modified Basel 3.1 rules at the start of 2027.
It had previously delayed the start by a year in the face of uncertainty in the global financial markets.
Basel 3.1 is set to promote 'banking resilience', according to the PRA, but comes as the Chancellor seeks reduce regulation in a bid to drive growth.
On Tuesday, the Bank said it would also change restrictions it claims will drive growth opportunities among smaller and mid-sized banks.
It will push forward with its 'strong and simple framework', which will reduce capital rules for smaller non-systemic banks and building societies, providing them with simpler restrictions than the largest UK banks.
The PRA said it is also putting forward prospective plans to make it easier for mid-sized banks to compete in the mortgage market.
It will publish a paper this summer with options to help-mid-sized banks grow by adjusting some barriers to securing permissions in providing residential mortgages.
Sam Woods, chief executive of the PRA and deputy governor for prudential regulation at the Bank, said: 'Today's announcements will give certainty to firms of all sizes about the future capital framework, bring in a simpler regime for smaller banks, make it easier for mid-sized banks to scale up in the mortgage market, and allow an extra year for part of the implementation of new investment banking rules.'
Dave Ramsden, deputy governor for markets and banking at the Bank, said: 'We have considered and reflected industry feedback in today's announcements.
'These changes are designed to foster growth and competition, recognising that smaller firms present lower risks to financial stability, whilst also maintaining size-appropriate resolvability capabilities.'
The rule changes come ahead of the Chancellor's Mansion House speech to financial industry bosses, where she is expected to launch further cuts of industry red tape.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
26 minutes ago
- Daily Mail
Trump collects nearly $50B from tariffs
The Trump administration has collected almost $50 billion from tariffs since initiating a global trade war in April. So far only Canada and China have retaliated against the steep tariffs that President Donald Trump has either threatened or imposed on much of the world. The White House currently imposes a minimum tariff of 10 percent on all foreign imports, 50 percent on steel and aluminum and 25 percent on car parts. US revenues from customs duties hit $64 billion in the second quarter of this year. The record high represents $47 billion more than the same period last year, according to US Treasury data. The duty income from other countries' tariffs on American goods has paled in comparison to the US revenue made in the same period. Many countries decided against retaliating with their own levies in a desperate bid to avoid even higher rates as negotiations took place. The EU, the world's biggest trading bloc, has put off implementing planned tariffs ahead of Trump's August 1 deadline for talks to conclude. It comes as The Wall Street Journal's chief economics correspondent delivered a surprise assessment on Wednesday - saying that Trump is 'winning' on trade policy . Greg Ip published his latest take on Trump's tariff wars in the publication on Tuesday, while criticizing the cruel nickname assigned to him after he 'chickened out' of imposing extreme tariffs. 'Trump has, by his own definition of success, already won his trade war,' Ip wrote, 'even without [the] deals' he vowed to reach with foreign allies. Trump faced harsh criticism for backing down on his 'Liberation Day' tariffs, earning him the moniker 'TACO' for 'Trump Always Chickens Out .' Trump threatened to redouble tariffs on any country that defied him by raising tariffs on the US, meaning many saw economic prudence in not hitting back. America also has an upper hand as the world's largest consumer market , meaning countries cannot afford for the US market for their goods to dry up. 'Unlike the 1930s when countries had more balanced trading relationships, today's world features a hub-and-spoke system with the US at the centre,' Marta Bengoa, professor of international economics at City University of New York, told The Financial Times . 'That makes retaliation economically less desirable for most countries, even when it might be politically satisfying.' Alexander Klein, professor of economic history at the University of Sussex, agreed, arguing that countries and blocs such as the EU are looking to minimize any further escalation and the inflation such a scenario could induce. 'I'd like to think leaders were learning the lessons of history, but I fear that's optimistic. More likely, the EU, Canada and many other governments fear the hit to global supply linkages and inflation from escalation,' he said. 'Trump cares less about that, so is taking advantage.' Consumers have been warned that prices for everyday goods, including groceries, will rise as a result of the levies . However, supply chain experts say companies are finding ways to spread the cost out across global markets to minimize the impact on US consumers, The Financial Times reported. 'Global brands can try and swallow some of the tariff cost through smart sourcing and cost savings but the majority will have to be distributed across other markets, because US consumers might swallow a 5 percent increase, but not 20 or even 40,' supply chain expert Simon Geale told the publication. Nonetheless, grocery giant Walmart said it is raising its prices to offset the cost of tariffs. Equally, car giants have started to raise their prices to maintain their profit margins. But despite rising prices, Americans continued shopping in June , according to new data released Thursday by the US Commerce Department. Retail sales rose 0.6 percent last month, which is a major boost compared to the 0.9 percent decline in May. T he June numbers were also stronger than analysts expected. Economists predicted retail sales would rebound only 0.2 percent. 'June's retail sales were resilient and they show that the consumer is still willing and able to spend,' Neil Saunders, a retail expert at GlobalData, told 'They also underline the fact that while tariffs have created a lot of uncertainty, we have not yet seen the full impact on prices and the economy.'
Daily Mail
an hour ago
- Daily Mail
The staggering figure Trump has already raised from tariffs as US economy continues to defy expectations
The Trump administration has collected almost $50 billion from tariffs since initiating a global trade war in April. So far only Canada and China have retaliated against the steep tariffs that President Donald Trump has either threatened or imposed on much of the world. The White House currently imposes a minimum tariff of 10 percent on all foreign imports, 50 percent on steel and aluminum and 25 percent on car parts. US revenues from customs duties hit $64 billion in the second quarter of this year. The record high represents $47 billion more than the same period last year, according to US Treasury data. The duty income from other countries' tariffs on American goods has paled in comparison to the US revenue made in the same period. Many countries decided against retaliating with their own levies in a desperate bid to avoid even higher rates as negotiations took place. The EU, the world's biggest trading bloc, has put off implementing planned tariffs ahead of Trump's August 1 deadline for talks to conclude. It comes as The Wall Street Journal's chief economics correspondent delivered a surprise assessment on Wednesday - saying that Trump is 'winning' on trade policy. Greg Ip published his latest take on Trump's tariff wars in the publication on Tuesday, while criticizing the cruel nickname assigned to him after he 'chickened out' of imposing extreme tariffs. 'Trump has, by his own definition of success, already won his trade war,' Ip wrote, 'even without [the] deals' he vowed to reach with foreign allies. Trump faced harsh criticism for backing down on his 'Liberation Day' tariffs, earning him the moniker 'TACO' for 'Trump Always Chickens Out.' Trump threatened to redouble tariffs on any country that defied him by raising tariffs on the US, meaning many saw economic prudence in not hitting back. America also has an upper hand as the world's largest consumer market, meaning countries cannot afford for the US market for their goods to dry up. 'Unlike the 1930s when countries had more balanced trading relationships, today's world features a hub-and-spoke system with the US at the centre,' Marta Bengoa, professor of international economics at City University of New York, told The Financial Times. 'That makes retaliation economically less desirable for most countries, even when it might be politically satisfying.' Alexander Klein, professor of economic history at the University of Sussex, agreed, arguing that countries and blocs such as the EU are looking to minimize any further escalation and the inflation such a scenario could induce. US revenue from customs duties raked in $64 billion in the second quarter of the year The duty income from other countries' tariffs on American goods has paled in comparison to the US revenue made in the second quarter of this year Trump faced harsh criticism for backing down on his 'Liberation Day' tariffs, earning him the moniker 'TACO' for 'Trump Always Chickens Out' 'I'd like to think leaders were learning the lessons of history, but I fear that's optimistic. More likely, the EU, Canada and many other governments fear the hit to global supply linkages and inflation from escalation,' he said. 'Trump cares less about that, so is taking advantage.' Consumers have been warned that prices for everyday goods, including groceries, will rise as a result of the levies. However, supply chain experts say companies are finding ways to spread the cost out across global markets to minimize the impact on US consumers, The Financial Times reported. 'Global brands can try and swallow some of the tariff cost through smart sourcing and cost savings but the majority will have to be distributed across other markets, because US consumers might swallow a 5 percent increase, but not 20 or even 40,' supply chain expert Simon Geale told the publication. Nonetheless grocery giant Walmart said it is raising its prices to offset the cost of tariffs. Equally car giants have started to raise their prices to maintain their profit margins. But despite rising prices, Americans continued shopping in June, according to new data released Thursday by the US Commerce Department. Retail sales rose 0.6 percent last month, which is a major boost compared to the 0.9 percent decline in May. The June numbers were also stronger than analysts expected. Economists predicted retail sales would rebound only 0.2 percent. 'June's retail sales were resilient and they show that the consumer is still willing and able to spend,' Neil Saunders, a retail expert at GlobalData, told
BBC News
an hour ago
- BBC News
Trump say Coca-Cola go change key ingredient inside drink for US
United States President Donald Trump say Coca-Cola don agree to use real cane sugar for drinks wey dem dey sell for US. Coca-Cola dey use corn syrup for im American products, but Trump Health Secretary Robert F Kennedy Jr don show concern about how dis ingredient dey affect pipo health. "I don dey speak to Coca-Cola about using REAL Cane Sugar for Coke for United States, and dem don agree to do so," Trump write on social media. "I go like to thank all di pipo wey dey for authority for Coca-Cola." Without direct confirmation of di change for di recipe, one Coca-Cola tok tok pesin say dem "appreciate President Trump enthusiasm" and say " we go soon share more details on new innovative offerings inside our Coca-Cola product range". Although di sweetener inside Coke wey dem dey sell for US na corn syrup, for many oda kontris Coca Cola dey make dis product sweet in different ways. Mexico for example, dem dey use cane sugar. Coca-Cola sweetener for Nigeria While for Nigeria, Coca-Cola bin dey use aspartame and acesulfame-K for products like Coca-Cola Zero Sugar. E dey use Sucralose for odas and im drinks bin be 50-50 of sugar inside drinks. But right now, e no too clear weda na di old sweetener, abi na di new one wey bin collect approval from NAFDAC dem dey use. According to one report from one investigate of Nigeria Federal Competition & Consumer Protection Commission (FCCPC), for October 2019 di company conclude one process of reducing or eliminating di sugar inside dia drinks. But FCCPC for dia website say dem continue to produce and market di old togeda wit di new formular "without alerting consumers." Di consumer protection agency add say, for 2019, di company switch back to di 50-50 sugar old formular for drinks like Limca afta NAFDAC give am approval for di new one. Trump happy wella wit dis development for US wen im post on Wednesday for Truth Social: "Dis go be very good move by dem – You go see. E just get beta!" For April, Coca-Cola CEO James Quincey tell investors say "we continue to make progress on sugar reduction for our drinks". Im say dia company for Atlanta don "do dis by changing recipes as well as by using our global marketing resources and distribution network to boost awareness of and interest in our ever-expanding portfolio". But any decision to use cane sugar instead fit leave bitter taste for di mouth of American corn farmers. Corn Refiners Association President and CEO John Bode tok for one statement: "Replacing high fructose corn syrup wit cane sugar go cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, all wit no nutritional benefit." Di US health secretary and im Make America Healthy Again movement dey campaign make companies remove ingredients like corn syrup, seed oils and artificial dyes from dia products, im say dem dey cause plenty health problems. Kennedy also dey critical of di amount of sugar wey Americans dey consume and tori be say im dey plan to update guidelines for diet for di whole kontri dis summer. Trump na regular drinker of Diet Coke – wey dey use artificial sweetener aspartame. Im even get one special button wey im install for di Oval Office Resolute desk so dem go fit to serve am di drink.
