BCBS issues NSFR consultation
15 December 2014 Basel
Image: Shutterstock
The Basel Committee on Banking Supervision has issued for consultation the net stable funding ratio (NSFR) disclosure standards, following the publication of the NSFR standard in October 2014.
Similar to the liquidity coverage ratio disclosure framework, the NSFR is intended to improve the transparency of regulatory funding requirements, reinforce the Principles for Sound Liquidity Risk Management and Supervision, strengthen market discipline, and reduce uncertainty in the markets as the NSFR is implemented.
The Bank for International Settlements has stated: “It is important that banks adopt a common public disclosure framework to help market participants consistently assess banks' funding risk.”
“To promote the consistency and usability of disclosures related to the NSFR, the committee has agreed that internationally active banks across Basel Committee member jurisdictions will be required to publish their NSFRs according to a common template.”
Consistent with the implementation of the NSFR standard, supervisors will give effect to these disclosure requirements, and banks will be required to comply with them from the date of the first reporting period after 1 January 2018.
The committee has stated that it is welcoming comments on all aspects of the consultative document, which must be uploaded here by 6 March 2015.
Similar to the liquidity coverage ratio disclosure framework, the NSFR is intended to improve the transparency of regulatory funding requirements, reinforce the Principles for Sound Liquidity Risk Management and Supervision, strengthen market discipline, and reduce uncertainty in the markets as the NSFR is implemented.
The Bank for International Settlements has stated: “It is important that banks adopt a common public disclosure framework to help market participants consistently assess banks' funding risk.”
“To promote the consistency and usability of disclosures related to the NSFR, the committee has agreed that internationally active banks across Basel Committee member jurisdictions will be required to publish their NSFRs according to a common template.”
Consistent with the implementation of the NSFR standard, supervisors will give effect to these disclosure requirements, and banks will be required to comply with them from the date of the first reporting period after 1 January 2018.
The committee has stated that it is welcoming comments on all aspects of the consultative document, which must be uploaded here by 6 March 2015.
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