The PRA’s UK Basel III regime

Further to its proposals in February 2021, the PRA has now published its near-final rules implementing the remaining Basel III standards into the UK prudential regulatory framework.

These rules, referred to as the “UK Basel III regime”, will take effect on 1 January 2022 (i.e. six months after EU CRR2 has come into force) and will constitute the UK’s prudential regulatory regime for UK banks and PRA-designated investment firms going forward.

The UK Basel III regime implements the Basel III standards with a number of targeted deviations and differs from EU CRR2 in several respects.

Our report summarises key aspects of the UK Basel III regime, departures from the underlying Basel standards, differences with EU CRR2 and amendments to the PRA’s original proposals.