(14)The delay in the implementation of the Basel III rules in jurisdictions with internationally active banks leads to temporary distortions in the level playing field, also as a result of the output floor that became applicable in the Union from 1 January 2025. To mitigate those distortions and ensure a smooth transition, credit institutions should temporarily benefit from a targeted and limited phase-in of the own funds requirements for market risk under the alternative standardised approach. Credit institutions that apply the simplified standardised approach should similarly benefit from the phase-in.