Press release

15 Mar 2021 London, GB

Despite delays to the Basel 3 Reforms implementation date, UK banks still behind on readiness ahead of 1st January 2023 deadline

Data comes from a December 2020 survey of senior management covering 45 of the largest global banks, which includes more than 80% of the UK banking market by assets, ahead of the revised 1st January 2023 Basel 3 Reforms implementation date

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Sarah Graham
Sarah Graham

EY UK Head of Financial Services Media Relations; EY EMEIA Financial Services Brand Content Lead

Media relations professional and corporate storyteller. Focused on the financial services sector.

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Data comes from a December 2020 survey of senior management covering 45 of the largest global banks, which includes more than 80% of the UK banking market by assets, ahead of the revised 1st January 2023 Basel 3 Reforms implementation date

  • The majority of UK banks (83%) surveyed have appointed someone to lead Basel 3 Reforms activity, but only half have a fully governed, funded and resourced programme in place
  • A quarter (25%) of UK banks ranked implementation funding as the most significant challenge facing their firm in delivering the Reforms, and half (50%) said finding the right data to comply with the reforms is a key challenge

Jared Chebib, UK Banking Partner at EY, comments: “There are relatively sizeable disparities in the level of activity between UK banks when it comes to readiness for a January 2023 implementation, although we have seen encouraging progress over the past 12 months. That said, with just under two years to go, the road to compliance with the Reforms should not be underestimated. Those with significant work still to do must push forward in earnest now to remain on track and hit the deadline.

“Operating within the current high-cost regulatory environment and amidst the ongoing challenges of the pandemic, allocation of appropriate funding continues to be one of the major concerns for UK banks, alongside the availability of and access to the necessary data. The Reforms are adding complex operational challenges, and banks are feeling the financial strain, but non-compliance is not an option. UK banks with catching up to do must take stock and expedite preparations to gear up their strategy with appropriate leadership, funding and momentum. This is fundamental to ensuring that the UK banking sector remains robust and resilient, can support the nation’s post-pandemic recovery and retains its world-leading position, particularly in the post-Brexit era.

“As we progress down the road to Basel compliance, collaboration between regulators, industry and policymakers will be key if we are to strike the right balance between supporting the nation’s economic growth and ensuring our banking sector is equipped to withstand the challenges ahead.”