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ARTICLE · 16 MAY 2016

Agencies Propose Net Stable Funding Ratio Rule

The most stringent of the NSFR's requirements would apply to, among others, banking organizations with $250 billion or more in total consolidated assets.

United StatesFinance and Banking

On May 3, 2016, the Federal Deposit Insurance Corporation, the Federal Reserve and the Office of the Comptroller of the Currency proposed a rule, the net stable funding ratio (the "NSFR"), to strengthen banks by requiring them to maintain a minimum level of stable funding relative to the liquidity of their assets, derivatives and commitments over a one-year period.  The most stringent of the NSFR's requirements would apply to, among others, banking organizations with $250 billion or more in total consolidated assets.  The NSFR would become effective January 1, 2018.  Release.  Proposed Rule.

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