Link Securities | Reuters reports that the European Commission (EC) announced yesterday that it will delay the implementation of new global rules governing banking operations by one year, until 1 January 2027. Sources told Reuters last month that the European Union (EU) would delay the implementation of the rules pending further clarity on the US government’s plans to deregulate its financial sector.
The so-called Fundamental Review of the Trading Book is a key part of the Basel III package, conceived in the wake of the global financial crisis, but has not yet been implemented by Britain or the US, two of the world’s major financial centres. For its part, its adoption in the EU was already delayed by a year, to 2026, last year when it became clear that the US would not be able to adopt the rules by their original deadline.
In this regard, the EC said yesterday that recent international developments have indicated further delays in the implementation of Basel III by some major global jurisdictions, and therefore concerns about the level playing field at international level and its impact on EU banks remain high.