Banking Rules Delay: EU Sets 2027 Date
- The European Commission (EC) announced Wednesday it will postpone the implementation of new Basel III banking regulations until 2027.
- The EC said the delay addresses concerns about maintaining a level playing field internationally, given that other major global jurisdictions have also postponed Basel III implementation.
- The FRTB regulation seeks to align capital charges more closely with the actual risks banks face in their capital markets activities.
The European Commission has pushed back the implementation of Basel III banking rules,including the Fundamental Review of the Trading book (FRTB),to 2027. This delay reflects the EU’s commitment to international consistency in financial regulation. The initial implementation date was set for 2026, but global concerns have led to this strategic shift. Consumers are actively seeking alternatives as tighter credit markets reshape the financial landscape, with debt levels rising across the board. News Directory 3 keeps you informed about these critical adjustments. Explore this news and stay ahead of the curve; discover what’s next for banks and consumers alike.
EC Delays Basel III Banking rules Implementation Until 2027
Updated June 12, 2025
The European Commission (EC) announced Wednesday it will postpone the implementation of new Basel III banking regulations until 2027. this delay includes the Fundamental Review of the Trading Book (FRTB),which aims to refine risk measurement techniques.
The EC said the delay addresses concerns about maintaining a level playing field internationally, given that other major global jurisdictions have also postponed Basel III implementation. The commission noted it remains committed to the timely adoption of Basel III standards, with most requirements already in effect since the start of the year through its 2024 Banking package.
The FRTB regulation seeks to align capital charges more closely with the actual risks banks face in their capital markets activities. The EC had previously agreed to delay the rule until 2026.
Separately, tighter credit markets are pushing consumers to seek alternatives to traditional banking products. Clive Kinross, CEO of Propel Holdings, told PYMNTS that the credit pipeline is currently very tight. Macroeconomic uncertainty related to tariffs is shifting consumers, who might otherwise qualify for mainstream credit, into different market segments.
Data from the Federal Reserve Bank of New York indicates a year-over-year increase in late-stage delinquencies on revolving debt.Household debt reached $18.2 trillion in the first quarter of 2025, a $167 billion increase from the previous quarter.
Kinross said there is a meaningful difference between riskier consumers and risky business, highlighting an opportunity for companies like Propel Holdings to serve underserved borrowers.
what’s next
The European Commission will continue to monitor international developments regarding basel III implementation and assess the impact on EU banks.