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.