Market Risk Prudential Requirements FRTB Consultation
Summary
The European Commission has launched a public consultation on a draft delegated act implementing the Fundamental Review of the Trading Book (FRTB) market risk capital requirements for EU banks. The FRTB, part of the global Basel III framework from the Basel Committee on Banking Supervision, introduces more advanced risk-measurement methods to better align capital requirements with actual trading risks. With all other Basel III requirements having applied since January 1, 2025, the FRTB is targeted for January 1, 2027 implementation. The proposed amendments aim to offset the negative capital impact for EU banks for three years to support a level playing field internationally.
“The formal adoption of the delegated act is expected to take place at the end of a four-week period on 19 May 2026.”
Banks with significant trading book positions should review their FRTB readiness ahead of the January 1, 2027 implementation date, particularly given the three-year capital offset provisions that may affect capital planning and competitive positioning in international markets.
About this source
GovPing monitors EC Finance News for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 6 changes logged to date.
What changed
The European Commission has published a draft delegated act implementing the Fundamental Review of the Trading Book (FRTB) market risk capital requirements for EU banks, targeted for implementation from January 1, 2027. The proposal includes targeted amendments to offset the FRTB's negative capital impact for a period of three years, reflecting feedback from a prior targeted consultation held at the end of 2025 and input from Member State experts.
EU banks engaged in trading activities should monitor this consultation closely, as the three-year capital offset provisions are intended to maintain competitive equity with internationally active peers. Banks and competent authorities should prepare for framework implementation by January 1, 2027, given the formal adoption timeline of May 19, 2026.
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
The European Commission has launched a public consultation on a draft delegated act on the prudential framework for banks' market risk – the fundamental review of the trading book (FRTB).
Implemented as part of the global banking standards from the Basel Committee on Banking Supervision (Basel III), the FRTB introduces more advanced risk‑measurement methods to better align capital requirements for trading activities with the risks banks actually face when trading. All Basel III requirements except the FRTB have applied since 1 January 2025, underscoring the EU's commitment to timely implementation of international standards.
Today's draft delegated act proposes targeted amendments to the FRTB rules for EU banks due to apply from 1 January 2027 in accordance with the Capital Requirements Regulation. These amendments aim to support a level playing field for EU banks competing internationally in trading activities by offsetting the negative capital impact of the FRTB for a period of three years.
The proposed measures reflect feedback from a two‑month targeted consultation held at the end of 2025 and input from Member State experts.
The draft delegated act aligns with the objectives of the savings and investments union Communication, which highlights that strong competition between banks in their trading activities makes maintaining a level playing field for internationally active banks a priority.
The formal adoption of the delegated act is expected to take place at the end of a four‑week period on 19 May 2026. This timeline should provide banks and competent authorities sufficient visibility to implement the framework from 1 January 2027.
Respond to the public feedback
Related links
Implementing and delegated acts under the CRR
Details
Publication date 22 April 2026 Author Directorate-General for Financial Stability, Financial Services and Capital Markets Union
Share this page
Mentioned entities
Related changes
Get daily alerts for EC Finance News
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from EC.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when EC Finance News publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.