Europe delays implementing stricter banking rules under Basel III reforms until 2027, aligning with US

From Yahoo Finance: 2025-06-13 00:01:00

The European Commission has delayed implementing new banking rules, part of the Basel III reforms, until 2027. These rules would tighten regulations on investment-bank trading desks, impacting banks on both sides of the Atlantic. The delay comes as the US shows less inclination toward similar regulations, potentially creating an uneven playing field for EU banks.

Last year, the Federal Reserve softened its Basel III rules after lobbying from the banking industry, and US officials plan to roll back bank capital requirements. The UK has also put its own rules on hold until 2027, waiting to see the US’s move. The European Commission cites concerns about competitiveness and growth in delaying the rules.

Banks are waiting for a recovery in dealmaking to boost investment fees, contingent on clarity from the Trump administration on trade policy. Goldman Sachs and Bank of America executives see potential in investment banking, but volatility remains an obstacle. The outlook is strong, but uncertainty persists in the banking sector.



Read more at Yahoo Finance: Europe Delays Stricter Banking Rules to Keep ‘Level Playing Field’ With US Rivals