Commission seeks views on market risk prudential requirements for EU banks
Date: 23/04/2026
Commission seeks views on market risk prudential requirements for EU banks
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.
The 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.
Input from all interested parties can be submitted on the ‘Have Your Say’ portal.