FDIC chairman Martin Gruenberg
released a proposal for establishing a net stable funding ratio
(NSFR), part of the effort to strengthen banks' liquidity in
the event of market instability. FDIC says the proposal is
consistent with the Basel standard set in 2015, although it differs
by providing a narrower definition of a "high-quality liquid
asset" and a way to address "trapped liquidity."
Bank holding companies and depository institutions with $250
billion or more in total consolidated assets or $10 billion or more
in foreign exposure will be subject to the NSFR. The Federal
Reserve Board will release a less-stringent version for holding
companies with at least $50 billion, FDIC said.
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