The European Commission has confirmed that the implementation of new international banking rules known as the Fundamental Review of the Trading Book (FRTB) will be delayed until January 1, 2027. This decision follows earlier postponements and reflects ongoing concerns about uneven adoption across major financial jurisdictions. The FRTB, a core component of the Basel III regulatory package, aims to strengthen capital requirements for banks engaged in trading activities. However, the United States and the United Kingdom, two of the world’s largest financial centers, have not yet adopted the rules, contributing to the EU’s decision to wait.
In a statement, the European Commission said, “Recent international developments have indicated further delays in the Basel III implementation by some major global jurisdictions. Therefore, concerns regarding the international level playing field and the impact on EU banks remain high.” Sources told Reuters that the EU is waiting for more clarity from the U.S. administration on its financial regulatory plans. The decision to push back the timeline is of particular importance to CFOs, who must now revise their compliance strategies and financial risk projections in line with the updated regulatory horizon.
