meta_id 3212654

On June 4, 2026, the European Commission adopted targeted, time-limited amendments to the EU's implementation of the Fundamental Review of the Trading Book (FRTB), the new market risk capital framework for banks established under the Basel III banking standards set by the Basel Committee on Banking Supervision (BCBS). The measures will apply for three years from January 1, 2027. The FRTB strengthens risk measurement in banks' trading activities and ensures capital requirements more accurately reflect actual market risks. While the EU fully implemented all other Basel III standards since January 1, 2025, delays in FRTB implementation by major jurisdictions have created competitive distortions for EU banks operating in global financial markets. The Commission previously postponed the market risk rules for two years under the Capital Requirements Regulation (CRR), exhausting the full deferral period available. The delegated act introduces a multiplier to temporarily offset capital impacts for EU banks adversely affected by FRTB implementation, addressing concerns raised by the Savings and Investments Union (SIU), which emphasises safeguarding EU banks' competitiveness—particularly those active in global capital markets—against third-country institutions. The Commission drafted the delegated act following public consultation and technical assessment to ensure smooth, coherent FRTB implementation in the EU while allowing continued monitoring of global implementation developments. The delegated act will now undergo review by the European Parliament and the Council, with a three-month scrutiny period extendable by a further three months. If no objection is raised, the measures will enter into application on January 1, 2027, for a period of three years. Maria Luis Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, said the measures "help preserve a level playing field in global financial markets while maintaining our commitment to the Basel standards" and provide "the necessary time to monitor developments in other major jurisdictions."