Brussels (Brussels Morning Newspaper) – European commissioner for financial services, Maria Luis Albuquerque, said the European Union will soon announce its proposed measures for implementing the aspect of the Basel III rules on banks’ trading transactions.
“We’ll do it soon,”
the EU’s finance chief said.
It has already been postponed to 2026; we will have to look into it and see whether we postpone further.
Basel III is an all-encompassing regulatory framework that the Basel Committee on Banking Supervision had put together with a view toward strengthening banking and enhancing resilience in its wake after the 2008 crisis. The European Union version is the Basel III regulation.
Its regulations have aimed at strengthening the EU banking sector’s economic shock resilience capacity. It aimed to strengthen banking to make banks more resilient towards future economic shocks and assist in the transition process to climate neutrality.
What is the Basel III status as of now?
The European Union has agreed on a banking package, namely, amendments to the Capital Requirements Regulation and the Capital Requirements Directive. It was aimed at making EU banks more resilient to economic shocks. These rules are to be effective from 1 January 2025.
However, the provisions related to market risk coverage will be effective from January 1, 2026. The market risk coverage is mainly delayed due to the proposal of the United States to delay the applicability of similar regulations. It has been decided so that European banks do not face an uneven playing field against other global banks.
Albuquerque emphasised that the EU will soon review its timeline for implementation and assess whether further postponements are required. The attention will be focused on ensuring that the EU banks are adequately prepared to comply with the new regulations, while keeping a watch on other jurisdictions.
