04 Jun 2026 10:45 UTC
The European Commission will delay the introduction of a new market risk capital framework for banks for three years to see how the U.S. and Britain implement the same international standards, it said on Thursday.
➤ The decision aims to create a level playing field in global financial markets while maintaining commitment to Basel standards.
➤ This delay is intended to align with the implementation of international standards (Basel III, FRTB) by the U.S. and Britain, ensuring European banks remain competitive.
➤ The European Commission has delayed its new market risk capital framework for banks by three years, until 2030.
The European Commission will delay the introduction of a new market risk capital framework for banks for three years to see how the U.S. and Britain implement the same international standards, it said on Thursday.
The framework is part of the Fundamental Review of the Trading Book (FRTB) and the global Basel III banking standards that are to strengthen risk measurement in banks' trading and make sure their capital accurately reflects the risks they take.
Pushing back the implementation of the capital requirement rules related to trading risk is meant to avoid putting European banks at a disadvantage to peers in the U.S. and Britain until it is clear how the two jurisdictions will proceed.
"Europe's banks must be able to compete on equal terms with their international peers," EU Commissioner for Financial Services Maria Luis Albuquerque said.
"These targeted and time-limited measures help preserve a level playing field in global financial markets while maintaining our commitment to the Basel standards."
"They... give us the necessary time to monitor developments in other major jurisdictions before determining the most appropriate long-term approach," she said.
Under EU law, the new capital requirement rules would have otherwise applied in full from January 2027. The Commission's new regime, unless vetoed over the next six months by either EU governments or the European Parliament, will run from 2027 to the end of 2029.
The three-year delay has been agreed with the European Central Bank and the European Banking Authority, officials said.
Categories rationale: The article discusses a delay in regulatory implementation for banks, directly impacting jurisdictions (EU, US, UK) and their legal/regulatory frameworks. It also touches upon the banking system's core operations and capital requirements.Characteristics justification: The article discusses a delay in regulatory implementation, indicating uncertainty about future rules and potential disadvantages for European banks. The sentiment is slightly negative due to the delay and competitive concerns. The relevance is high as it concerns major financial jurisdictions and regulatory standards. The uncertainty score is high due to the pending decisions and the 'awaiting US, standards' nature of the news.Tag relevance: The tags capture the core subject matter: the regulatory framework, the involved entities (EU Commission, banks), the standards (Basel III, FRTB), and the key action (delay, competition).asset-types: others
rwa: false
entropy: 0.6
sentiment: -0.3
staleness: 0.4
relevance: 0.7
uncertainty: 0.8RWATimes slug: reuters-eu-delays-bank-risk-capital-framework-by-three-years-awaiting-us-standards-1985900773