meta_id 3087711

On 22 April 2026, the European Commission launched a public consultation on a draft delegated act concerning prudential requirements for banks' market risk, specifically the fundamental review of the trading book (FRTB). The FRTB is part of the global banking standards established by the Basel Committee on Banking Supervision (Basel III). It introduces more advanced risk-measurement methods to align capital requirements for trading activities with the actual risks banks face when trading. While all other Basel III requirements have applied since 1 January 2025, the FRTB implementation has been delayed to allow for targeted amendments. The draft delegated act proposes amendments to FRTB rules for European Union banks, scheduled to apply from 1 January 2027 under the Capital Requirements Regulation. These amendments aim to support a level playing field for EU banks competing internationally in trading activities by offsetting the negative capital impact of the FRTB for a three-year period. The proposed measures reflect feedback from a two-month targeted consultation conducted at the end of 2025 and input from Member State experts. The amendments align with the objectives of the savings and investments union Communication, which prioritises maintaining a level playing field for internationally active banks. The formal adoption of the delegated act is expected to occur at the end of a four-week consultation period on 19 May 2026. This timeline is intended to provide banks and competent authorities sufficient visibility to implement the framework from 1 January 2027. Stakeholders can submit feedback during the four-week consultation period ending 19 May 2026.