The European Commission plans to delay the impact of the Fundamental Review of the Trading Book (FRTB) reform, a key part of the Basel III framework, after Easter. The move aims to prevent EU banks from facing higher capital requirements than their US counterparts, as American regulators announced plans to cut capital charges for major banks.

FRTB introduces stricter rules for measuring market risk and allocating capital buffers. The European Banking Authority estimates that full implementation would raise market risk capital requirements by about 30 per cent on average, with some banks facing increases up to 80 per cent. Brussels will introduce a temporary multiplier to neutralize these increases for trading activities for up to three years.

The delay follows the UK's decision to postpone FRTB implementation until 2028 and US Federal Reserve moves to reduce requirements for banks including JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley. Critics warn that delaying the reform could undermine the international banking framework established after the 2008 financial crisis.