The U.K. has previously called the EU “an international outlier” for deviating from the globally agreed standards too much.
Brussels implemented its version of Basel III, the last piece of a major reform agenda dating back to the global financial crisis, on January 1 this year. But it has already delayed one part of the rules, which affects the international operations of big lenders, until 2026, which could be further postponed in response to the move from London.
The EU official said the U.K.’s move creates “clear level playing field issues” that the bloc “will need to consider carefully.”
“Implementing standards only when the last jurisdiction has implemented them is not the way to preserve financial stability in international markets, in particular for large financial centres,” the EU official said.
The European Commission has noted the delay and said it is committed to implementing the bank standards on time.