"British Central" He postpones new capital decisions until after Trump’s inauguration

The British Central Bank postponed the start of implementing new capital rules for English banks, which it had intended to implement starting this year, in anticipation of the directions of the upcoming Trump administration and how it will deal with the implementation of the “Basel Global Agreement.” In the United States of America.

The Financial Times reported: The Prudential Regulation Authority of the British Central Bank announced that it has postponed the start of implementing a more stringent system of capital controls in the United Kingdom until January 2027, which reflects the extent of the anticipation of lawmakers around the world, and their anxious follow-up of what Donald Trump will do with financial regulations.

This step comes amid pressure on UK lawmakers from the government to ease rules that may limit economic growth in the country.

The “Basel” agreement was drafted. 3″, for the first time in more than 10 years ago, with the aim of increasing the amounts of funds from equity available to absorb pressure and tension at the bank, to avoid engaging in relief and rescue operations from the state as happened in the wake of the financial crisis that broke out in 2008.

< p>The British newspaper indicates that the "Prudential Regulation Authority" (BRA), last year amended capital rules, called “Basel 3.1.” To reduce the excess capital required for British banks, and to postpone its implementation until January 2026, and earlier, it postponed the start date for implementing the new capital system for another six months in 2023.

The BRA said: In light of the current uncertainty regarding the timing of implementation of Basel III.1 standards in the United States, taking into account competitive factors and growth considerations, and after consulting IPR, The Ministry of the Treasury has decided to further postpone the implementation of these rules.

British bank shares responded in weekend trading yesterday, achieving notable increases, and “Barclays” shares increased by 1.7%, “Lloyds” by 1.2%, and “Natwest” by 1.7%. By 1%.

This movement reflects the extent of the pressure exerted by the government on legislators to find a way to reduce bureaucratic burdens in the process of pushing the British economy for growth and competitiveness.

British Prime Minister Keir Starmer had stated in front of International investors last year that it would “tear down the bureaucracy that hinders investment.” In the United Kingdom.

This month, Treasury Secretary Rachel Reeves met with key UK lawmakers, including Sam Woods, CEO of the Prudential Regulation Authority, to call on them to change the rules to support growth. The stagnant British economy.

Woods told the “House of Lords” Last week, the "BRA" It planned to ease the burden of regulations by allowing insureds and insurance companies to seek retroactive authorization for their investments, instead of forcing them to request it in advance. He also said that it aimed to reduce filing requirements for banks during the current year, actually reducing them for a third of insureds and insurance companies.

The British Central Bank’s move came in the wake of the European Union’s decision last year to exert more pressure to implement some of the rules of the “Basel Agreement” As of this month, the union has postponed some aspects of the rules package, covering the issue of investment banks’ trading books, for next year.

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