EU lawmakers delay FRTB capital charges

Leaked paper potentially pushes market risk capital charges beyond Basel’s 2022 deadline

European Union legislators have agreed to strip out revamped capital charges for market risk from a review of bank capital rules, introducing only a reporting requirement initially. The decision potentially delays full implementation beyond the 2022 deadline set by the Basel Committee, and could well dampen banks’ preparation efforts.

“There is a provisional agreement on the approach that essentially introduces reporting requirements before the FRTB [Fundamental Review of the Trading Book]