Recital 4

(4) The deferred application of the FRTB standards has as a consequence that until 1 January 2027, institutions should be required to continue to apply the market risk framework laid down in the version of Regulation (EU) No 575/2013 in force on 8 July 2024 (i.e. one day before Regulation (EU) 2024/1623 that amended Regulation (EU) No 575/2013 entered into force), while finalising the implementation of the FRTB approaches. To account for the operational complexities and costs that some institutions face for the maintenance of the current internal models for another year, in the uncertain international context of the FRTB implementation, and given the temporary short-dated nature of the deferral, competent authorities should use, in their ongoing assessment of the internal models during that one-year period, the necessary flexibility to avoid impacts on the own funds requirements that are not linked to increases in the underlying market risk.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-16 · Text as adopted (Official Journal); later amendments are not incorporated in this text.