Proposed requirements on banks' disclosure of the Net Stable Funding Ratio issued by the Basel Committee
9 December 2014
The Basel Committee on Banking Supervision has today issued for consultation the Net Stable Funding Ratio ("NSFR") disclosure standards, following the publication of the NSFR standard in October 2014.
Similar to the LCR disclosure framework, this requirement will 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.
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 welcomes comments on all aspects of this consultative document. Comments on the proposals should be uploaded here by Friday 6 March 2015. Alternatively, comments may be sent by post to: Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland. All comments may be published on the website of the Bank for International Settlements unless a respondent requests confidential treatment.