The European Banking Authority (EBA) has published a letter it has received from the European Commission responding to the EBA’s letter of 15 December 2015 with an accompanying report on the net stable funding requirements (NSFR) under the Capital Requirements Regulation.

The EBA report concluded that the NSFR developed by the Basel Committee on Banking Supervision (the Basel Committee) fits well with the European banking framework but also flagged some European specificities.

In its letter, the Commission seeks further technical advice from the EBA on two areas – the treatment of derivatives in the NSFR and the effective application of the principle of “proportionality”.

The EBA is asked to provide further analysis by July 2016.

View Commission requests further advice in response to EBA report on net stable funding requirements, 22 April 2016