Lloyds Banking Group PLC (LSE:LLOY), and the UK banking sector were in the spotlight following a report in the Financial Times, that the Bank of England plans to push the implementation date for the final Basel 3 rules back by six months to July 2025.
This is said to be due to the high volume of responses the BoE has received from its initial consultation document, which meant the previously planned implementation date of January 2025 would be difficult to achieve.
Delaying the implementation date by six months would bring it into line with the proposed timeframe set by the US but would be six months later than planned by the EU.
Shore Capital analyst Gary Greenwood notes the implementation of Basel 3.1 in the UK has been plagued with delays, having originally been planned for implementation in January 2021.
He thinks UK banks need clarity sooner rather than later so they can plan accordingly.
"Knowing what their future capital requirements will be is clearly important when it comes to determining pricing strategies and potential shareholder distributions," he added.