On Tuesday, April 26, 2016, the Federal Deposit Insurance Corporation (FDIC) released details of the Joint Agency (FDIC, OCC, Federal Reserve Board) liquidity standards proposal related to the Net Stable Funding Ratio (NSFR). This new requirement will build upon the existing Liquidity Coverage Ratio (LCR) final rule, and promote stable funding for banks and discourage reliance on short-term wholesale funding, including repurchase agreements. This proposed rule will apply to banks, bank holding companies and savings-and-loan holding companies with $250 billion or more in total assets or $10 billion or more of foreign exposures. In addition, the Federal Reserve Board is proposing a modified NSFR requirement for bank holding companies and certain savings and loan holding companies that, in each case, have $50 billion or more, but less than $250 billion, in total consolidated assets and less than $10 billion in total on balance sheet foreign exposure. A 90-day comment period has since been opened to the public.
We invite you to join leaders from KPMG’s Market and Treasury Risk Advisory practice for an interactive webinar on Monday, May 2, 2016 from 4:00–5:30pm EST, where they will discuss the implications of the proposal and highlight significant differences between this U.S. version and the international Basel rule.