EU Pushes Back Bank Capital Rules to Match Global Pace

The delay centers on the Fundamental Review of the Trading Book, a core component of the Basel III standards designed to sharpen how banks calculate and hold capital against trading risks. While the rules were originally slated for full enforcement by January 2027, the European Commission now intends to push the transition period through the end of 2029.

Maria Luis Albuquerque, EU Commissioner for Financial Services, emphasized that these time-limited measures are essential to monitor how other major jurisdictions integrate the international standards. The move, coordinated with both the European Central Bank and the European Banking Authority, prevents European firms from shouldering stricter capital burdens prematurely. Unless blocked by the European Parliament or member state governments within the next six months, the revised timeline will take effect to safeguard the competitiveness of the region's financial sector.