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Irish Examiner
23-05-2025
- Business
- Irish Examiner
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. Bloomberg
Yahoo
22-05-2025
- Business
- Yahoo
Exclusive-EU to delay bank rules as it waits for Trump's deregulation moves, sources say
By Francesco Canepa, Jan Strupczewski and Giuseppe Fonte FRANKFURT(Reuters) -The European Union is set to delay new, global rules governing banks' trading again as it waits for more clarity about the U.S. administration's plans to deregulate its financial sector, sources told Reuters. The Fundamental Review of the Trading Book (FRTB) is a key part the Basel III package devised in the wake of the global financial crisis but not yet implemented by Britain or the United States, two of the world's key financial centres. Its adoption in the EU was already pushed back by a year to 2026 last year, when it became clear that the United States would not be able to adopt the rules by its original deadline. The latest, one-year postponement to January 1, 2027 reflects pressure from European banks fearing they will find themselves at a disadvantage to their U.S. and UK rivals, five senior officials at European and national institutions said. A senior EU source said European Commissioner Maria Luís Albuquerque informed the bloc's finance ministers about the delay at a meeting on May 13. The European Commission had said it would make a decision on whether or not to postpone the FRTB by the end of June after consulting with the industry and its supervisors. The FRTB governs capital and reporting requirements relating to banks' trading assets, crucially including how risk should be measured using a standard method or banks' own calculations. The United States has stalled the introduction of the entire Basel III package and U.S. President Donald Trump's administration signalled it might even relax some of the existing rules, in what would mark a U-turn from the push for more controls that followed the 2007-2009 financial crisis. European banks have urged the EU to refrain from imposing new burdens that their competitors overseas do not face. "It now looks as if this set of rules will not exist in the U.S. and we know that Brussels is looking at this carefully," Commerzbank's chief executive Bettina Orlopp said at a conference on Monday. "We have to be careful that we maintain the international competitiveness of European banks." The European Central Bank, the EU's top banking watchdog and for a long time a staunch defender of a timely implementation of Basel III, proposed a compromise earlier this month. It envisaged a one-year delay to rules applied to banks' internal risk models, while those concerning the one-size-fits-all, "standardised approach" would be phased in over three years starting in 2026. Some governments have also weighed in, with French President Emmanuel Macron calling for a "synchronisation" on financial rules between the EU, the United States and Britain. Britain earlier this year pushed back its Basel III implementation to 2027 while Washington has yet to unveil a timeline. In contrast, the EU has already implemented most of the Basel III package, which took effect this year. China, Japan and Canada have done so long ago. In March, the European Commission launched a consultation, asking banks and supervisors if they thought the FRTB should go live next year, be delayed by 12 months or tweaked to align it more with draft U.S. and UK rules. The European Banking Federation, an industry body, said member banks that were exposed to U.S. and British competition favoured a one-year delay. The International Swaps and Derivatives Association, a global lobby, said "a clear majority" of its own members also favoured a delay, although a minority preferred that the FRTB took effect next year to avoid running both new and old rules at once. (Additional reporting by Tom Sims in Frankfurt, Leigh Thomas in Paris and Valentina Za in MilanEditing by Tomasz Janowski) Sign in to access your portfolio
Reuters
22-05-2025
- Business
- Reuters
Exclusive: EU to delay bank rules as it waits for Trump's deregulation moves, sources say
FRANKFURT, May 22(Reuters) - The European Union is set to delay new, global rules governing banks' trading again as it waits for more clarity about the U.S. administration's plans to deregulate its financial sector, sources told Reuters. The Fundamental Review of the Trading Book (FRTB) is a key part the Basel III package devised in the wake of the global financial crisis but not yet implemented by Britain or the United States, two of the world's key financial centres. Its adoption in the EU was already pushed back by a year to 2026 last year, when it became clear that the United States would not be able to adopt the rules by its original deadline. The latest, one-year postponement to January 1, 2027 reflects pressure from European banks fearing they will find themselves at a disadvantage to their U.S. and UK rivals, five senior officials at European and national institutions said. A senior EU source said European Commissioner Maria Luís Albuquerque informed the bloc's finance ministers about the delay at a meeting on May 13. The European Commission had said it would make a decision on whether or not to postpone the FRTB by the end of June after consulting with the industry and its supervisors. The FRTB governs capital and reporting requirements relating to banks' trading assets, crucially including how risk should be measured using a standard method or banks' own calculations. The United States has stalled the introduction of the entire Basel III package and U.S. President Donald Trump's administration signalled it might even relax some of the existing rules, in what would mark a U-turn from the push for more controls that followed the 2007-2009 financial crisis. European banks have urged the EU to refrain from imposing new burdens that their competitors overseas do not face. "It now looks as if this set of rules will not exist in the U.S. and we know that Brussels is looking at this carefully," Commerzbank's chief executive Bettina Orlopp said at a conference on Monday. "We have to be careful that we maintain the international competitiveness of European banks." The European Central Bank, the EU's top banking watchdog and for a long time a staunch defender of a timely implementation of Basel III, proposed a compromise earlier this month. It envisaged a one-year delay to rules applied to banks' internal risk models, while those concerning the one-size-fits-all, "standardised approach" would be phased in over three years starting in 2026. Some governments have also weighed in, with French President Emmanuel Macron calling for a "synchronisation, opens new tab" on financial rules between the EU, the United States and Britain. Britain earlier this year pushed back its Basel III implementation to 2027 while Washington has yet to unveil a timeline. In contrast, the EU has already implemented most of the Basel III package, which took effect this year. China, Japan and Canada have done so long ago. In March, the European Commission launched a consultation, asking banks and supervisors if they thought the FRTB should go live next year, be delayed by 12 months or tweaked to align it more with draft U.S. and UK rules. The European Banking Federation, an industry body, said member banks that were exposed to U.S. and British competition favoured a one-year delay. The International Swaps and Derivatives Association, a global lobby, said "a clear majority" of its own members also favoured a delay, although a minority preferred that the FRTB took effect next year to avoid running both new and old rules at once.
Yahoo
22-05-2025
- Business
- Yahoo
Exclusive-EU to delay bank rules as it waits for Trump's deregulation moves, sources say
By Francesco Canepa, Jan Strupczewski and Giuseppe Fonte FRANKFURT(Reuters) -The European Union is set to delay new, global rules governing banks' trading again as it waits for more clarity about the U.S. administration's plans to deregulate its financial sector, sources told Reuters. The Fundamental Review of the Trading Book (FRTB) is a key part the Basel III package devised in the wake of the global financial crisis but not yet implemented by Britain or the United States, two of the world's key financial centres. Its adoption in the EU was already pushed back by a year to 2026 last year, when it became clear that the United States would not be able to adopt the rules by its original deadline. The latest, one-year postponement to January 1, 2027 reflects pressure from European banks fearing they will find themselves at a disadvantage to their U.S. and UK rivals, five senior officials at European and national institutions said. A senior EU source said European Commissioner Maria Luís Albuquerque informed the bloc's finance ministers about the delay at a meeting on May 13. The European Commission had said it would make a decision on whether or not to postpone the FRTB by the end of June after consulting with the industry and its supervisors. The FRTB governs capital and reporting requirements relating to banks' trading assets, crucially including how risk should be measured using a standard method or banks' own calculations. The United States has stalled the introduction of the entire Basel III package and U.S. President Donald Trump's administration signalled it might even relax some of the existing rules, in what would mark a U-turn from the push for more controls that followed the 2007-2009 financial crisis. European banks have urged the EU to refrain from imposing new burdens that their competitors overseas do not face. "It now looks as if this set of rules will not exist in the U.S. and we know that Brussels is looking at this carefully," Commerzbank's chief executive Bettina Orlopp said at a conference on Monday. "We have to be careful that we maintain the international competitiveness of European banks." The European Central Bank, the EU's top banking watchdog and for a long time a staunch defender of a timely implementation of Basel III, proposed a compromise earlier this month. It envisaged a one-year delay to rules applied to banks' internal risk models, while those concerning the one-size-fits-all, "standardised approach" would be phased in over three years starting in 2026. Some governments have also weighed in, with French President Emmanuel Macron calling for a "synchronisation" on financial rules between the EU, the United States and Britain. Britain earlier this year pushed back its Basel III implementation to 2027 while Washington has yet to unveil a timeline. In contrast, the EU has already implemented most of the Basel III package, which took effect this year. China, Japan and Canada have done so long ago. In March, the European Commission launched a consultation, asking banks and supervisors if they thought the FRTB should go live next year, be delayed by 12 months or tweaked to align it more with draft U.S. and UK rules. The European Banking Federation, an industry body, said member banks that were exposed to U.S. and British competition favoured a one-year delay. The International Swaps and Derivatives Association, a global lobby, said "a clear majority" of its own members also favoured a delay, although a minority preferred that the FRTB took effect next year to avoid running both new and old rules at once. (Additional reporting by Tom Sims in Frankfurt, Leigh Thomas in Paris and Valentina Za in MilanEditing by Tomasz Janowski) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
28-04-2025
- Business
- Mint
Most Banks Want EU to Delay Trading Book Rules, Industry Poll Says
(Bloomberg) -- A majority of banks want the EU to postpone the adoption of new trading book rules, a survey shows, heaping pressure on the bloc to follow similar moves in the US and the UK. 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 First Published: 28 Apr 2025, 02:10 PM IST
