The Final U.S. Net Stable Funding Ratio: Six Things To Know

The Final U.S. Net Stable Funding Ratio: Six Things To Know

October 22, 2020, Covington Alert

On October 20, 2020, the federal banking agencies adopted a final rule to implement the net stable funding ratio (“NSFR”), a standardized liquidity requirement that the agencies proposed in May 2016. Once effective on July 1, 2021, the final rule will require certain larger banking institutions to maintain a minimum level of stable funding as measured over a one-year time horizon.