EU Delays Implementation of Basel III Trading Book Rules Until 2027

The European Commission announced on Thursday that it will postpone the introduction of new global rules governing banks’ trading activities by one year, moving the implementation date to January 1, 2027.

The so-called Fundamental Review of the Trading Book, a cornerstone of the Basel III regulatory package developed in the aftermath of the global financial crisis, has not yet been implemented by Britain or the United States, two of the world’s leading financial centres. Sources indicated last month that the EU was considering the delay while awaiting further clarity on the U.S. administration’s plans regarding financial sector deregulation.

The European Union had already deferred the adoption of the rules to 2026 last year, after it became evident that the United States would not be able to meet the original deadline.

“Recent international developments have indicated further delays in the Basel III implementation by some major global jurisdictions,” the Commission said in a statement on Thursday. “Therefore, concerns regarding the international level playing field and the impact on EU banks remain high.”

The Commission’s announcement highlights the EU’s ongoing caution in aligning its banking regulations with global standards while ensuring that European institutions are not placed at a competitive disadvantage due to uneven implementation in other major markets.

By fLEXI tEAM