The European Commission has launched a public consultation on a draft delegated act that would make targeted amendments to the EU prudential framework for banks’ market risk under the Fundamental Review of the Trading Book (FRTB). The proposal is designed to support a level playing field for EU banks in international trading activities by offsetting the negative capital impact of the FRTB for a period of three years. The FRTB forms part of the Basel Committee on Banking Supervision’s Basel III standards and introduces more advanced risk measurement methods to align trading book capital requirements with underlying risks. Under the Capital Requirements Regulation, the FRTB is due to apply from 1 January 2027, while all other Basel III requirements have applied since 1 January 2025. The draft delegated act reflects feedback from a two-month targeted consultation held at the end of 2025 and input from Member State experts, and is framed as consistent with objectives in the savings and investments union Communication. Formal adoption of the delegated act is expected at the end of a four-week period on 19 May 2026, with the timeline intended to provide banks and competent authorities sufficient visibility ahead of the 1 January 2027 application date.
European Commission 2026-04-22
European Commission consults on delegated act to amend EU banks’ FRTB market risk rules with a three-year capital impact offset
The European Commission has launched a public consultation on a draft delegated act introducing targeted amendments to the EU prudential framework for banks’ market risk under the Fundamental Review of the Trading Book, aimed at offsetting the negative capital impact of the FRTB for three years and supporting a level playing field for EU banks. The draft, which follows a prior targeted consultation and Member State expert input, is intended to give banks and competent authorities sufficient visibility ahead of the 1 January 2027 application of the FRTB under the Capital Requirements Regulation.