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.


About Author

Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and editorial director at the American Bankers Association, where she oversees ABA Daily Newsbytes.