The Basel Committee on Banking Supervision proposed a common format for internationally active banks to disclose the recently proposed Net Stable Funding Ratio standard. The NSFR is to be reported quarterly, concurrently with financial reports.
The NSFR standard — a long-term liquidity measurement included in the Basel III liquidity standards that complements the shorter-term measure of cash flow Liquidity Coverage Ratio — was finalized by the committee in October. It is calculated by dividing available stable funding by the minimum required amount of stable funding. Each subject bank’s ratio must be equal to or greater than one.
Comments on the proposal are due by March 6, 2015.
Read the proposal.