The European Commission has postponed the implementation of the Fundamental Review of the Trading Book (FRTB), a key part of the Basel III international standards, until January 1, 2027.
This decision aims to align with other major global jurisdictions and maintain a level playing field for European banks involved in international trading activities. The FRTB introduces more sophisticated risk measurement techniques.
The delay is intended to give the Commission time to assess international developments and further refine the FRTB implementation in the EU. The Banking Package includes the possibility for the Commission to postpone the entry into force of the FRTB or to amend it, for a time limited period, by way of a delegated act.
The Commission is committed to avoiding penalizing EU banks active in global financial markets and preserving their competitiveness. The delegated act is now subject to review by the European Parliament and Council.