Commission proposes to postpone by one additional year the market risk prudential requirements under Basel III

European Commission - Press release Commission proposes to postpone by one additional year the market risk prudential requirements under Basel III Brussels, 12 June 2025 The European Commission has today adopted a delegated act that postpones by one additional year -until 1 January 2027 - the date of application of the one remaining part of the Basel III international standards in the EU – the Fundamental Review of the Trading Book (FRTB). The FRTB aims to introduce more sophisticated risk measurement techniques, allowing for a closer alignment between capital charges and the actual risks banks are facing in their capital markets activities. The application of the Basel standards is important for a resilient EU banking sector and to safeguard global financial stability. The Commission has always been committed to a timely implementation of the Basel III standards. As a matter of fact, most of the Basel III requirements entered into force on 1 January 2025 thanks to the 2024 Banking package. As regards the FRTB, 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. Last year, the Commission adopted a first delegated act to postpone by one year - until 1 January 2026 - the date of the FRTB application in the EU, in order to align its implementation with other major global jurisdictions and to preserve the global level playing field for...