European Commission - Directorate General for Energy
European Commission - Directorate General for Energy
04/22/2026 | Press release | Distributed by Public on 04/22/2026 06:25
Commission seeks views on market risk prudential requirements for EU banks
The European Commission has launched a public consultation on a draft delegated act on the prudential framework for banks' market risk - the fundamental review of the trading book (FRTB).
Implemented as part of the global banking standards from the Basel Committee on Banking Supervision (Basel III), the FRTB introduces more advanced risk-measurement methods to better align capital requirements for trading activities with the risks banks actually face when trading. All Basel III requirements except the FRTB have applied since 1 January 2025, underscoring the EU's commitment to timely implementation of international standards.
Today's draft delegated act proposes targeted amendments to the FRTB rules for EU banks due to apply from 1 January 2027 in accordance with the Capital Requirements Regulation. These amendments aim to support a level playing field for EU banks competing internationally in trading activities by offsetting the negative capital impact of the FRTB for a period of three years.
The proposed measures reflect feedback from a two-month targeted consultation held at the end of 2025 and input from Member State experts.
The draft delegated act aligns with the objectives of the savings and investments union Communication, which highlights that strong competition between banks in their trading activities makes maintaining a level playing field for internationally active banks a priority.
The formal adoption of the delegated act is expected to take place at the end of a four-week period on 19 May 2026. This timeline should provide banks and competent authorities sufficient visibility to implement the framework from 1 January 2027.
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