3 June 2026 22:00 UTC · European Commission · EU Commission Press Release · Source · Email X Link

European Commission adopts temporary Basel III market risk adjustments

Key points

Three-year measures from 1 January 2027
Delegated act includes multiplier to offset capital impacts

TL;DR

The European Commission says it has introduced targeted, time-limited amendments to the FRTB implementation to safeguard EU banks' competitiveness.
The measures apply for three years from 1 January 2027 and include a multiplier to temporarily offset capital impacts for EU banks.
The delegated act was drafted after public consultation and technical assessment and will be reviewed by the European Parliament and the Council during a scrutiny period.

Original text

European Commission - Press release Commission adopts temporary adjustments to Basel III Market Risk Rules to safeguard EU banks' competitiveness Brussels, 4 June 2026 To ensure that the EU banking sector benefits from a level playing field with international competitors, the European Commission has today introduced targeted, time-limited amendments to its implementation of the new market risk capital framework for banks. The measures will apply for three years from 1 January 2027. The Fundamental Review of the Trading Book (FRTB), part of the global Basel III banking standards set by the Basel Committee on Banking Supervision , strengthens risk measurement in banks' trading activities and ensures that capital requirements more accurately reflect actual market risks. While the EU has fully implemented all other Basel III standards since 1 January 2025, delays in the FRTB implementation by major jurisdictions have raised concerns over competitive distortions faced by EU banks operating in global financial markets. To address these challenges, the Commission had already postponed the market risk rules for two years, exhausting the full deferral period under the Capital Requirements Regulation (CRR). Today, the Commission has exercised its empowerment under CRR to introduce adjustments to the FRTB through a delegated act, including a multiplier to temporarily offset capital impacts for EU banks adversely affected by the FRTB implementation. The Commission's decision aligns with the objectives of the Savings and Investments Union , which emphasises the need to safeguard the competitiveness of EU banks — particularly those active in global capital markets — vis-à-vis third-country institutions. Given that other major jurisdictions are expected to delay FRTB implementation for at least a year, today's measures help maintain the playing field for EU banks and support EU capital market development. The delegated act was drafted following a public consultation and technical assessment. It ensures a smooth, coherent implementation of the FRTB in the EU, while allowing further monitoring of its implementation globally. Next steps The delegated act will now be reviewed by the European Parliament and the Council, with a three- month scrutiny period (extendable by a further three months) . If no objection is raised, the measures will enter into application on 1 January 2027, for a period of three years. IP/26/1256 Quote(s): "Europe’s banks must be able to compete on equal terms with their international peers. 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 provide certainty for EU banks, support the objectives of the Savings and Investments Union, and give us the necessary time to monitor developments in other major jurisdictions before determining the most appropriate long-term approach." Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union Press contacts: Siobhan MCGARRY (+32 2 29 64798) Marta PEREZ-CEJUELA ROMERO (+32 2 29 63770) General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email

Key tags

Topics

Keywords

Stats

Word count: 490

Summary words: 83

Compression: 17%

Boilerplate removed: Yes

Top phrases:

Entities

People

Organizations

Places

Brussels

Countries

European Union