by Francesco Canepa, Jan Strupczewski and Giuseppe Fonte
Frankfurt (Reuters) – The European Union (EU) is preparing to delay the implementation of new rules governing the negotiation activities of banks on the markets, pending more clarity on deregulation projects in the financial sector of the US administration, sources in Reuters told Reuters.
These rules are part of the fundamental journal of the negotiation portfolio (Fundamental Review of the Trading Book – FRTB), a regulatory system for monitoring market risks and a key element of the Basel III agreements designed in the wake of the financial crisis initiated in 2007.
Implemented in China, Japan or Canada, the FRTB has not yet been adopted by Great Britain or the United States, two of the main financial centers in the world.
Its adoption in the EU has also already been pushed over one year, to 2026, last year, when it appeared clear that the United States would not be able to adopt the rules within the initially planned period.
The adjournment of its adoption, on January 1, 2027, reflected the pressure exerted by European banks which fear being disadvantaged compared to their American and British rivals, said five senior officials of European and national institutions.
A high -level European source said that the European Commissioner for Financial Services, Maria LuÃs Albuquerque, had informed the finance ministers of the EU member states of this postponement at a meeting on May 13.
The European Commission said it would make a decision on the postponement or not of the FRTB by the end of June, after consulting the sector and its supervisors.
The FRTB governs the requirements for equity and information concerning the negotiation assets of banks, and in particular the way in which the risk must be measured using a standard method or calculations specific to banks.
The United States has blocked the introduction of the entire Basel III system and the administration of President Donald Trump reported that it could even soften some of the existing rules.
Such a decision would mark a reversal in relation to the pressure exerted in favor of strengthening controls following the financial crisis of 2007-2009.
“Maintain competitiveness”
European banks have urged the EU not to impose new charges that their foreign competitors are not confronted.
“It now seems that this set of rules will not exist in the United States and we know that Brussels carefully examines the question,” said Bettina Orlopp, director general of Commerzbank, at a conference on Monday.
“We have to make sure to maintain the international competitiveness of European banks.”
The European Central Bank (ECB), the main EU banking surveillance organization, which has long been a fervent defender of a rapid implementation of Basel III, proposed a compromise at the beginning of the month.
She planned to delay the rules applied to the internal risk models of banks by one year, while those concerning the standardized approach would be gradually introduced over three years from 2026.
Some governments have also expressed themselves, French President Emmanuel Macron calling for “synchronization” of financial rules between the EU, the United States and Great Britain.
At the beginning of the year, Great Britain rejected the implementation of Basel III to 2027, while Washington has not yet unveiled a calendar.
On the other hand, the EU has already implemented most of the Basel III system, which has entered into force this year. China, Japan and Canada have done so for a long time.
In March, the European Commission launched a consultation, asking the banks and the supervisory authorities if they thought that the FRTB should come into force next year, be delayed by 12 months or be modified to align itself more on the regulatory projects of the United States and the United Kingdom.
The European Banking Federation, a sector organization, said that member banks exposed to American and British competition were favorable to a year’s postponement.
International Swaps and Derivatives Association, an international pressure group, said that a “clear majority” of its members was also favorable to a postponement, even if a minority preferred that the FRTB comes into force next year in order to avoid having to apply both news and old rules.
(With the contribution of Tom Sims in Frankfurt, Leigh Thomas in Paris and Valentina ZA in Milan; Etienne Breban, edited by Kate Entringer)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
