Basel Committee on Banking Supervision, Basel III – The Net Stable Funding Ratio: frequently asked questions
The Basel Committee on Banking Supervision today issued in July 2016 answers to frequently asked questions (FAQs) on Basel III's Net Stable Funding Ratio (NSFR).
Answers covered critical areas such as the required stable funding factor for non-operational deposits held at other financial institutions, and for loans that have optionalities; treatment of retail and small-business deposits and term deposits; allocation of assets according to maturity buckets; circumstances for net basis reporting for certain securities financing transactions (such as repo or reverse repo), determination of adequate period for a non-maturity reverse repo (also known as open reverse repo), and treatment of margining for derivative contracts.
To promote consistent global implementation of these requirements, the committee periodically reviews frequently asked questions and publishes answers along with any necessary technical elaboration of the rules text and interpretative guidance.
The Committee has received a number of interpretation questions related to the October 2014 publication of the NSFR standard. The FAQs published today correspond to the text set out in that standard.