EU set to delay implementation of bank trading rule
The European Commission is set to recommend a fresh delay to the adoption of new trading book rules that govern the trading activities of banks, pushing implementation back to 2027.
The bloc is likely to delay the Fundamental Review of the Trading Book to January 2027 as it waits for clarity on how the US plans to implement the Basel rules, sources said, asking not to be identified discussing internal debates. A spokesperson for the commission in Brussels didn't immediately respond to a request for comment.
Europe's plan to implement the trading regulations this year was derailed after the US failed to agree on its own version of a wider package of capital rules, which is known as Basel Endgame in industry parlance. Washington's appetite for introducing the entire package have been thrown into further doubt by US president Donald Trump's administration, which has signalled a broad deregulation agenda.
The EC has already pushed back the implementation of the FRTB to 2026 avoid putting lenders such as Deutsche Bank and BNP Paribas at a disadvantage to their US competitors.
It launched a consultation earlier this year on options including another one year delay or for introducing temporary tweaks to the measures that would make them less burdensome.
A person familiar with discussions said Financial Services Commissioner Maria Luis Albuquerque told a recent finance ministers meeting that while a formal decision had not yet been taken, the consultation responses were overwhelmingly in favor of another one year delay. The final decision must be ratified by the College of Commissioners.
With the US plans up in the air, countries including France have been putting pressure on the commission to further delay the rules to preserve a level-playing field with those rivals. They've also argued the delay would free up capital that could then be used to offer loans and stir growth in their economies.
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