The European Union is pushing for a political deal by mid-June to shield banks from the full impact of the Fundamental Review of the Trading Book (FRTB) rules. The European Commission plans to present 13 proposals at a Wednesday meeting of the Expert Group on Banking, Payments and Insurance, including a 'bank-based multiplier' designed to neutralize FRTB effects for three years.

EU officials aim to complete the necessary steps for a delegated act by June's first half, requiring approval from the European Parliament and Council. The urgency stems from US regulatory easing that has raised concerns about European banks' competitiveness. Last week's Federal Reserve announcement to substantially water down FRTB implementation has intensified pressure on EU policymakers.

The debate follows the Commission's decision earlier this year to postpone FRTB until 2027 and consider shielding measures. French Banking Federation head Maya Atig emphasized the need for swift action, warning that delaying FRTB implementation would prevent worsening competitive distortions. The rules would ultimately require banks to set aside more capital for trading operations.