Implementing Basel 3 final (EU, UK and US): impact on undrawn credit facilities

30 June 2026

The EU, UK and US implementation of the remaining Basel 3 standards (Basel 3 final or Basel 3.1) impacts many banks’ regulatory capital requirements for undrawn corporate credit facilities by increasing credit conversion factors (CCFs) for shorter-term facilities, while reducing CCFs for longer-term facilities.

This briefing reviews how the new rules change the regulatory capital treatment of undrawn facilities and highlights differences of approach between the adopted EU rules, the planned UK rules and the US Basel endgame proposals.

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