Most Banks Want EU to Delay Trading Book Rules, Industry Poll Says
A 'clear majority' of participants in a survey were in favor of 'an additional one-year delay' to changing a set of rules known as Fundamental Review of the Trading Book, two influential lobby organizations said in a written response to an EU consultation.
Europe's plan to implement the FRTB changes was derailed after the US failed to agree on its own version of a wider set of capital rules known as Basel Endgame. The EU Commission has already pushed back FRTB implementation to 2026 to avoid putting the bloc's lenders at a disadvantage to their global competitors.
But many EU banks are demanding yet another delay saying that the previous postponement hasn't been enough.
The topic has pitted Europe's largest banks, who support the fresh postponement, against smaller ones, who say it would cost them money.
'A minority of the respondents' were in favor of sticking with the current implementation plan 'to avoid continued operational complexities,' the two lobby organizations — the Institute of International Finance and the International Swaps & Derivatives Association — said in their consultation response.
The IIF and ISDA polled 32 global banks on the topic, with 21 of them favoring another delay. Previous reports suggested as few as four or five banks, led by BNP Paribas SA, Deutsche Bank AG and Intesa Sanpaolo SpA, were pushing for postponement.
A separate submission from the European Banking Federation also pressed the EU to consider reforms to dilute the capital impact of the changes and to consider allowing some banks to implement in 2026 while others hold off until 2027. The Commission has already spoken out against that idea.
'Probably now the idea to implement the FRTB will be in a way that is much more neutral than the current approach,' BNP Paribas Chief Executive Officer Jean-Laurent Bonnafe said during an earnings call earlier this week when asked about the matter. 'It could start with another delay of implementation, and then be followed by a change in approach.'
Originally slated for implementation from 2022, the final package of Basel rules has been beset by delays. The EU introduced most of it earlier this year, but opted to postpone the trading book elements pending clarity on the US plans.
The UK has announced three delays to the entire package, while the US timeline remains unclear as a new slate of regulators assumes office. The Swiss have implemented in full, as have the Canadians and Japanese.
--With assistance from Claudia Cohen and Nicholas Comfort.
More stories like this are available on bloomberg.com
First Published: 28 Apr 2025, 02:10 PM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Govt working on 4 strategy pillars to push exports, fast track FTA talks amid high US tariffs
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The government is working on four strategy pillars, including fast-tracking trade pact negotiations and promoting ease of doing business, to push the country's exports in the wake of steep US tariffs on Indian goods , a top official said on Secretary Sunil Barthwal said that at a time when global trade is facing uncertainties, the commerce ministry is focusing on improving export competitiveness, strengthening export promotion, export diversification (products and markets), and import also said that India has requested the UK to fast-track approval of the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, so that it comes into force as early as the European Union also, "we are fast-tracking our negotiations," he told reporters here.A lot of work has progressed in the proposed pact between India and the EU, and both sides are hoping to conclude the talks by the end of this year, Barthwal said, adding there are further meetings that are going to happen on meetings will happen at the negotiator, secretary and minister's with Oman have concluded, and the deal may be signed when dates are decided mutually by both countries, he said."That (trade pact with Oman) is very close in terms of signing," the secretary said, adding discussions are also progressing with New Zealand, Peru, and the 10-nation Asean bloc, the review negotiations for the free trade agreement in goods are happening."Yesterday we discussed how we can improve trade between India and ASEAN," he said, adding along with this, "we are also focussing on increasing FTA utilisation with countries with which we have already signed these pacts".Working on a strategy is crucial amid the steep tariffs imposed by the US on Indian goods. Already, a 25 per cent additional import duty is in place on Indian goods since August 7, and another 25 per cent will come into effect from August 27, raising the total taxes on Indian goods to 50 per cent.A host of labour-intensive sectors such as chemicals, leather and footwear, gems and jewellery and textiles have raised serious concerns over the impact of these tariffs."There are uncertainties because of these are getting is still no clarity about what is happening on the globe."In this uncertain environment, we thought that let's have a clear-cut strategy so that we can focus on our exports in a manner which is within our have strategised across four pillars," Barthwal strengthening export promotion, the ministry already has different export promotion schemes , but there is a need to further strengthen import diversification, there is a need to reduce dependencies on a few countries and enhance domestic sales."First approach is to focus on our free trade agreements (FTAs)," he said, adding the commerce ministry will work on fast tracking facilitating the utilisation of these pacts."We are looking at saturation of FTA is a gradual process, but we will be focusing now more on this," he ministry, he said, is now focusing on 30 more countries in addition to 20 earlier, for pushing India's 50 countries constitute more than 90 per cent of India's export basket, and they include Malaysia, Indonesia, Mexico, Italy, Belgium, Nigeria, Oman and Poland."As a strategy, we will focus on these countries. We will do more export promotion activities in these nations," Barthwal the impact of US tariffs on India, an official said the ministry is in touch with stakeholders."We know the sectors that are more exposed towards the are talking to export promotion councils and trying to understand their exposure to the US," the official said, adding states are also looking at how they help and facilitate official said trade in domestic currencies may also be discussed during meetings between a visiting high-level Indian delegation and Russian counterparts."A very high-level delegation is going from MEA (Ministry of External Affairs), and the commerce will also be participating in that high-level delegation to Russia," the official said.
NDTV
an hour ago
- NDTV
US Threatens India Of Additional Tariffs If Trump-Putin Peace Deal Fails
New York: US Treasury Secretary Scott Bessent has warned that the secondary tariffs on India could go up if "things don't go well" during talks between President Donald Trump and Russian President Vladimir Putin in Alaska on Friday. Last week, Donald Trump imposed tariffs totalling 50 per cent on India, including 25 per cent for Delhi's purchases of Russian oil that will come into effect from August 27. "I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate. And we put secondary tariffs on the Indians for buying Russian oil. I could see, if things don't go well, then sanctions or secondary tariffs could go up," Scott Bessent said in an interview with Bloomberg on Wednesday. When asked about China, the main buyer of Russian crude, Bessent said he is "not going to get ahead of the President, but the President is the best at creating leverage for himself, and he will make it clear to President Putin that all options are on the table." On whether sanctions can go up or loosened, Bessent said, "Sanctions can go up, they can be loosened. They can have a definitive life. They can go on indefinitely. You know, there's this Russian shadow fleet of ships around the world that I think we could crack down on." He added that even as Trump is meeting with Putin, the Europeans "need to join us" and need to be willing to "put on these secondary sanctions." Bessent recalled that at the G7 meeting in Canada this year, when he asked the leaders at the table whether they were willing to put a 200 per cent secondary tariff on China. "And you know what, everybody wanted to see what kind of shoes they were wearing." He added that Trump is committed to ending the bloodshed in the Ukraine war. "It's put up or shut up time. The President is creating his own leverage. We need the Europeans to come in and help create more leverage," Bessent said. Responding to the tariffs, the Ministry of External Affairs has said that the targeting of India is unjustified and unreasonable. "Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," it said.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Sanctions-hit refiner Nayara in talks with India govt to sustain operations
Russia-backed Indian refiner Nayara Energy said on Thursday it was talking to government authorities and partners to maintain operational stability of its 400,000 barrels per day refinery and fuel supplies despite EU sanctions hurting the supply chain. The private refiner, majority-owned by Russian companies including Rosneft, was sanctioned by the EU last month as part of a package targeting entities linked to Russian oil. The private company sells about 70% of its refined fuels in India through more than 6,600 retail outlets, it said in a Delhi court filing. Nayara is supplying fuels to its retail stations through coastal, rail, and road networks, it said. "Our retail fuel stations continue to operate as usual while we diligently work to ensure uninterrupted fuel supplies across India," it said. The sanctions forced Nayara to cut output at its Vadinar refinery on the West Coast to 70%-80% and hit its exports. Its former chief executives resigned and shippers backed out from local movement of its refined fuels. The company is operating the refinery at a "healthy run rate" and is supplying fuels, it said. Nayara has not specified at what rate its refinery is operating. Nayara has sought help from India's shipping ministry to get vessels for the movement of its refined fuels, a government source said on Thursday. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
