Risk.net Technical clarification allows subsidiary capital to be assigned as funding for consolidated group Print this page
A seemingly minor clarification in the final US net stable funding ratio (NSFR) could represent a major change to how bankers interpret the rule, by effectively allowing large banks to assign funding more easily across the group in order to comply with the ratio at a consolidated level. “Everybody was so happy about it,” says one senior regulation official at a global systemically important bank (G-Sib). “It’s a big, big, big benefit.” Two other liquidity managers from G-Sibs confirm this Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.