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 Record
27 minutes ago
- Daily Record
How to stay and play at Donald Trump's brand new golf course in Scotland?
The 36-hole Trump International Golf Links resort in Aberdeenshire will open to the public next month. Donald Trump officially opened his new golf course in Aberdeenshire yesterday, Tuesday, July 2. The controversial US President paid tribute to the late Scottish actor Sean Connery and recalled the long-running planning disputes that once delayed the development. Speaking to guests on the first tee at Trump International Golf Links, the former US President praised Scotland's First Minister John Swinney, calling him a 'terrific guy' following a dinner the night before. Reflecting on the history of the site, Trump said: 'We started with a beautiful piece of land, but we made it much more beautiful. The area has really welcomed us. "But you'll remember at the beginning it wasn't quite a welcome... but it wasn't bad. But with time they've liked us more and more.' Trump also credited Connery with helping push the controversial project forward. He said: 'The land, they said, couldn't get zoned, it was an impossibility. "And Sean Connery said 'let the bloody bloke build his golf course'. Once he said that, everything came into line.' Now open for visitors, the luxury golf destination outside Aberdeen is accepting bookings for both accommodation and tee times. Where to stay Guests can stay at Trump MacLeod House & Lodge Hotel, located on the former Menie Estate near Balmedie. The five-star property is described as a traditional Scottish baronial mansion, set across 1,400 acres of coastal land. It features 19 luxury guest rooms, Italian marble staircases, traditional fireplaces, intimate dining and bar areas, a whisky bar, outdoor hot tub, spa facilities and hidden staircases. Personal butler service is available. The hotel is open for exclusive hire, weddings, corporate events or individual bookings. Prices for a house or lodge room in the week beginning Sunday, August 18, start from £628, depending on length of stay and availability. How to book tee times Golfers can book tee times on the property's two courses starting August 13. Prices are set at £495 per person per round. A 'Greatest 36' option, combining both courses, is available until October 31. Tee times are being allocated on a first-come, first-served basis during the opening months, and multiple levels of club membership are offered, though prices have not been disclosed. Golf packages and pricing For those looking to combine luxury stays with golf, a number of packages are now on offer. A two-night package, which includes two rounds of golf (one on each course), a welcome dinner, breakfast, and a dram of whisky, is priced at £2,500 per person or £4,000 for two people sharing. This offer is valid between August 25 and October 31, 2025. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. A shorter one-night version, including one round of golf on the original course, an overnight stay and a three-course dinner at The Dunes Restaurant & Bar, costs £1,070 for a single occupancy room or £782.50 per person for a double occupancy room. There is also a golf-and-stay-only option, which includes a one-night stay and a round of golf for £985 (single occupancy) or £697.50 per person (double occupancy). In the off-season months of November and December, the price drops to £460 per person, per night. For a more relaxing experience, a 'Winter Getaway for Two' is also available at £495, including dinner at Trump's Restaurant & Cellar, overnight accommodation, breakfast, and wellness treatments at the on-site spa.
Glasgow Times
30 minutes ago
- Glasgow Times
Tesco, Sainsbury's and M&S shoppers issued fruit update
Reports suggest that blueberries are thriving due to the warmest spring on record, with harvests increasing by nearly a quarter so far this year. By the end of August, it is anticipated that about 5,133 tonnes will be harvested, up from almost 4,187 tonnes at the same time last year. Spent almost £5 on the 'posh' strawberries and raspberries from @sainsburys only to find half of them are mush when we have gone to eat them. What a waste of money for what is meant to be their leading branded products. — Christopher James (@TheBornAgainCJ) July 29, 2025 According to fruit experts and grocery analysts across the country, sales of the round fruit have also risen by nine per cent year-on-year. Daniel Martin, Group Commercial Director at SandA Produce, commented: "This blueberry season has seen a really positive early start, about two weeks ahead of schedule, thanks to strong light levels and an absence of rain. "As a result, we're seeing excellent fruit size and nice, even ripening across the crop. In summary, we are optimistic about the season and expect to see excellent flavour and shelf life from this year's crop." Jim Floor, Managing Director of Hall Hunter, one of the UK's leading blueberry growers, stated: "When it comes to robotic fruit picking, we're seeing steady and encouraging progress from robotics and automation companies. However, the technology isn't quite ready for widespread commercial adoption just yet." Nick Marston, Chair of the industry body British Berry Growers, revealed that all UK berry crops, including strawberries, raspberries and blackberries, were up by about 25 per cent. Recommended reading: "The weather has been very beneficial for all berry crops," he said. Bartosz Pinkosz from the Summer Berry Company, which provides fruit to major supermarkets, revealed during the earlier warning to British families that his West Sussex farm was growing berries so large they "cannot fit in your mouth". Mr Pinkosz informed The Guardian newspaper two months previously: "I have genuinely never seen a harvest produce such large berries consistently. Some are supersized – growing to the size of plums or even kiwi fruits."
Sky News
33 minutes ago
- Sky News
Trade war: Aston Martin outlines plan to beat US tariff hit as profits sink
Why you can trust Sky News Aston Martin Lagonda has revealed a plan to bring forward production at the beginning of next year as it looks to swerve a worse hit from US trade tariffs. The UK luxury carmaker said it was lobbying the UK government to improve the terms of its trade deal with Donald Trump. The company explained that, as things stand, it would have to ship more cars earlier than planned next year if it was to ease the threat to its sales and bottom line posed by the quota element of the agreement. Auto manufacturers had initially faced down a tariff above 25% from April. Since 30 June, that US import duty rate fell to 10% but it only applies to the first 100,000 UK-made cars which enter the US on an annual basis. Aston said on Wednesday that the tariff chaos, coupled with weaker demand in China, meant adjusted operating profits for the year would roughly break even. 2:49 It had previously forecast a positive result. The company, best-known for its models' starring role in the majority of James Bond movies, issued the annual profit warning followed a temporary halt to US exports amid the tariff chaos. It resumed shipments last month. The United States and China account for its top two export markets. It has not been alone in issuing a warning to investors over the anticipated pressures on sales. Aston Martin boss Adrian Hallmark described demand in China, where consumers are feeling the pinch, as "stagnant" in a call with analysts. "The evolving and disruptive US tariff situation was unhelpful to our operations in Q2," he said. Aston said it was reviewing its supply chain to reduce possible negative impacts such as disruption to demand and distribution. It reported a 25% plunge in revenue to £454.4m in the six months to 30 June compared to the same period last year. Its core profit measure was in the red to the tune of £121.5m. That was 22% up on a £99.8m loss. Mr Hallmark said the financial performance also reflected fewer planned deliveries of its Specials models. The company is preparing for the first customer deliveries of Valhalla, its first mid-engine plug-in hybrid electric supercar. That is expected in the final quarter of the year.
