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WSBI-ESBG responds to NSFR consultation

WSBI-ESBG responds to NSFR consultation

Supports Basel Committee goals limiting bank short-term wholesale funding over-reliance

BRUSSELS, 6 May 2014 – WSBI-ESBG supports Basel Committee on Banking Supervision policy goals of limiting banks' overreliance on short-term wholesale funding, encouraging banks to better assess funding risk across all on- and off-balance sheet items, and promoting banking sector funding stability. 

The BCBS suggestion to design the net stable funding ratio as a simple, easy-to-implement tool goes in the right direction. Despite the proposal's fine-tuning, in particular via alignment with the liquidity coverage ratio, some concerns remain, such as potential imbalances that can lead to short-term deleveraging, and treatment of covered bonds, reverse repos, derivatives, central counterparties and non-financial deposits.

Liquidity ratio