More delays to the new Basel 3.1 rules are likely to see them pushed out until January 2026, which is mildly positive for smaller banks but means little for the large players, suggests broker KBW.
For the major UK banks the proposed changes have already been largely superseded by other reviews or been managed down, says KBW, while for the smaller operators, notably Close Bros, it will allow building capital while the motor finance review continues.
Of the big banks, Barclays and Lloyds Banking Group PLC (LSE:LLOY) are both rated 'outperform' with targets of 300p and 65p respectively.
'Outperform' ratings among the smaller banks are Close Bros (target 675p) and OSB (570p).