EU Seeks Three-Year Delay on Capital Impact of Trading Rules

The European Commission is considering options to shield banks for three years from higher capital requirements on their trading activities, as the EU faces pressure to put off measures that could put its lenders at a disadvantage.

The plan would help banks to apply the rules, known as Fundamental Review of the Trading Book (FRTB), as well as lowering costs and maintaining a “level-playing field” until other countries adopt the package, part of the Basel III reforms. The measures had already been delayed until the beginning of 2027 in the EU. The adoption timeline in the US remains unclear.