U.S. Agencies Propose Net Stable Funding Ratio

14 June 2016
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Key takeaways

  • The U.S. federal bank regulatory agencies released the long-awaited proposed rulemaking to implement the net stable funding ratio (“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 on Banking Supervision, the proposed rule focuses on reducing funding risk over a one-year horizon, which is intended to complement the liquidity coverage ratio’s focus on liquidity resilience over a 30-day period.