U.S. Proposes Net Stable Funding Ratio

18 May 2016

Key takeaways

  • The OCC, FDIC and Federal Reserve released their long-awaited proposed rulemaking to implement the NSFR, which would require certain U.S. banking organizations to maintain what the agencies consider to be a stable funding profile.
  • Largely consistent with the version of the NSFR finalized by the Basel Committee, the proposed rule focuses on reducing funding risk over a one-year horizon, which complements the LCR’s focus on liquidity resilience over a 30-day period.