Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 29

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 29
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 date
of implementation for most of these proposed reforms was set at January 1, 2022. However, the Basel Committee has chosen to bring the
output floor requirements into force over the course of an added five-year phased implementation period post January 1, 2022, ending on
January 1, 2027. In March 2020, the oversight body of the Basel Committee on Banking Supervision, the Group of Central Bank Governors
and Heads of Supervision (the “GHOS”) announced that it has endorsed a set of measures to provide additional operational
capacity for banks and supervisors to respond to the immediate financial stability priorities resulting from the impact of the COVID-19
pandemic on the global banking system, including the deferral by one year to January 1, 2023 of the implementation date of most of the
proposed reforms listed above and the deferral by one year to January 1, 2028 of the implementation period for the accompanying transitional
arrangements for the output floor.

<div align='center'>S-28</div>

In November 2021, the U.K. financial regulators
announced that they would look to implement parts of the Basel III standards that remain to be implemented in the U.K. (the so-called
“Basel 3.1 standards”) post March 2023. On November 30, 2022, the PRA published Consultation Paper CP16/22 setting out its
proposed rules for the implementation of the Basel 3.1 standards. The U.K. HM Treasury also published a simultaneous consultation with
the necessary secondary legislation to facilitate the implementation of the PRA's Basel 3.1 rules. This was followed by a Policy Statement,
PS17/23, published on December 12, 2023, which only partly addressed the subject matter of CP16/22. A second Policy Statement, PS 9/24,
addressing the bulk of the remainder of CP16/22 was published on September 12, 2024, confirming the implementation date as January 1,
2026, subject to certain transitional provisions. The PRA stated that it does not intend to change the policy or make substantive alterations
to these 'near-final' rules before publishing the final rules. The proposed changes affect existing approaches to calculation of risk
weights and introduce new limits around the use of internal models to calculate risk weights. In particular, the proposed rules introduce
a floor on RWAs that would