UK banks face divergent Basel 3.1 capital outcomes
Barclays’ RWA increase could erode Pillar 2A relief, while Lloyds expects a double benefit
UK banks are set to receive reductions of up to 59 basis points in their Common Equity Tier 1 (CET1) capital requirements when Basel 3.1 takes effect next year, although changes in risk-weighted assets (RWAs) could limit the additional capital headroom they gain.
The banks’ third-quarter results provide estimates of the impact of the Prudential Regulation Authority’s (PRA) recalibration of firm
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