The Basel Committee on Banking Supervision has published the final standard for the net stable funding ratio (NSFR).

The final NSFR retains the structure of the January 2014 consultative proposal. The key changes introduced in the final standard cover the required stable funding for:

  • short-term exposures to banks and other financial institutions;
  • derivatives exposures; and
  • assets posted as initial margin for derivative contracts.

The NSFR will become a minimum standard by 1 January 2018. The Basel Committee is currently developing disclosure standards for the NSFR and expects to publish them for consultation around year end.

View Net Stable Funding Ratio finalised by Basel Committee, 31 October 2014