May 27, 2016
The European Commission (EC) has launched a targeted consultation in order to gather the views of selected stakeholders on specific issues that could be raised by the implementation of the Net Stable Funding Ratio (NSFR) at EU level. In particular, this includes financial institutions that could be impacted by the implementation of the NSFR at EU level, associations representing their interests and supervisory authorities.
The NSFR measures the assumed degree of stability of liabilities and the liquidity of assets over a one-year horizon. Consequently, banks need to finance their long term activities with a stable source of funding in order to respect this requirement. The NSFR is intended to regulate risks not currently covered by Pillar I requirements. It also complements the Liquidity Coverage Ratio (LCR).
Any queries can be submitted to FISMA-CONSULT-NSFR@ec.europa.eu by 24 June 2016.
The full consultation document can be found here.