The Bank of England has proposed a one-year delay to part of the Basel 3.1 banking reforms, giving investment banks until 1 January 2028 to adopt the new internal model approach for market-risk capital requirements. The extension forms part of a consultation aimed at strengthening the competitiveness of UK lenders while aligning domestic rules with the global Basel framework. Under the same consultation, the Prudential Regulation Authority reiterated its plan to implement the bulk of the Basel 3.1 package by 1 January 2027 and confirmed that the separate Strong and Simple Capital Regime for smaller banks is also targeted for 1 January 2027. The regulator said the staggered timetable would give firms more certainty and time to adjust systems without undermining overall financial resilience.