Bank of England extends deadline to 2022 for institutions to comply with rules intended to avoid further taxpayer bailouts. The Bank of England has given banks an extra two years to comply with new rules that are intended to avoid a repeat of the taxpayer bailouts needed during the financial crash.
Setting out regulations about the shares and bonds banks must hold to absorb losses, Threadneedle Street said they would have until 2022, rather than 2020, to build up their buffers.
Since 2008, regulators around the world have been trying to find ways to make banks safe during a crisis without recourse to the taxpayer and the latest rules from the Bank are part of a package of measures intended to avoid bailouts.
Mark Carney, the governor of the Bank of England, said: “This policy is a significant milestone on the journey to end ‘too big to fail’ in the UK.”
The aim, he said, was to “ensure that banks that provide essential economic functions hold sufficient resources to be resolved in an orderly way, without recourse to public funds, and whilst allowing households and businesses to continue to access the services they need.”