Key facts
- UK banks are set to receive CET1 requirement reductions of up to 59 basis points when Basel 3.1 takes effect in 2027, per Risk.net.
- Barclays' risk-weighted asset increase could erode the Pillar 2A relief it would otherwise gain, Risk.net reported.
- Lloyds expects a double benefit from the changes, according to Risk.net.
- The estimates come from the banks' own third-quarter results, not from a published PRA determination.
UK banks are set to receive reductions of up to 59 basis points in their Common Equity Tier 1 capital requirements when Basel 3.1 takes effect in 2027, Risk.net reported on November 10, 2026. The figures are the banks' own estimates of the impact of the Prudential Regulation Authority's recalibration of firm-specific requirements, disclosed in their third-quarter results.
Outcomes differ by bank. Barclays' increase in risk-weighted assets, the denominator of the capital ratio, could erode the Pillar 2A relief it would otherwise receive, according to Risk.net. Lloyds expects a double benefit from the changes, the report said.
The report was published behind a subscription paywall and only its opening section was available. It did not state the size of the RWA changes at either bank, the individual CET1 reductions for each lender, or the date in 2027 on which the rules take effect.