EU Delays Basel III Implementation to 2026

The European Union (EU) has decided to postpone the implementation of the Fundamental Review of the Trading Book (FRTB), a crucial component of the Basel III banking reforms, by one year to January 2026. This delay, driven by concerns that the US may also postpone Basel III implementation, aims to maintain a level playing field for European banks in comparison to their American and British counterparts. The EU's move, supported by France and influenced by calls from French President Emmanuel Macron, seeks to prevent European lenders from facing a competitive disadvantage in the trading business. While the rest of the Basel III reforms in Europe remain on track for January 2025, the delay in the FRTB introduces complexities and challenges that regulators and industry players must address to ensure global alignment and competitiveness.