Basel Committee Announces Technical Change to NSFR

The Basel Committee on Banking Supervision today proposed technical changes to its framework for the Net Stable Funding Ratio, a long-term liquidity measurement included in the Basel III liquidity standards.

The changes would provide for “greater flexibility in the treatment of extraordinary central bank liquidity-absorbing monetary policy operations and ensure balanced treatment of all central bank operations under the NSFR” by allowing for a reduced required stable funding factor for central bank claims with maturity of more than 6 months. Comments on the proposal are due Feb. 5.