On Wednesday 24 July, the European Commission officially proposed to postpone by one year, until January 2026, the entry into force of provisions concerning the market activities of investment banks (‘Fundamental Review of the Trading Book’ or FRTB) included in the ‘Basel III’ package strengthening banking prudential requirements (see EUROPE 13420/31).
Announced last June (see EUROPE 13437/16), the postponement is due to the European Union’s desire to not disadvantage its banking sector at a time when other international jurisdictions, such as the United States, which are supposed to apply the Basel III Accord, are not prepared to do so in full from 2025.
The FRTB rules incorporate more sophisticated risk measurement techniques aimed at aligning capital requirements more closely with the actual risks that banks face in their capital market activities.
The European Parliament and the Council of the EU have three months to react to the proposal for a delegated act submitted to them.
To see the delegated act, go to https://aeur.eu/f/d3y (Original version in French by Mathieu Bion)