Commission seeks input on Basel III market risk rules for banks
Introduced by Basel III, this framework incorporates more sophisticated risk measurement techniques, to better match banks' capital requirements with the real risks in their market activities. Basel standards are global banking rules from the Basel Committee on Banking Supervision
that aim to ensure banks have enough capital, can handle financial stress, and manage liquidity risks. Except for the FRTB, all Basel III requirements have been in place since 1 January 2025, demonstrating the EU’s commitment to a timely application of international standards for banks.
The Commission adopted delegated acts to postpone the implementation of the market risk rules under the FRTB until 1 January 2027 using the maximum extension allowed by the Capital Requirements Regulation (CRR). This decision was justified by delays or deviations in the Basel III implementation by other major global jurisdictions. As emphasised in the savings and investments union Communication
, the intense competition between banks in their trading activities makes the preservation of a level playing field between internationally active banks in that area a high priority.
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