Regulatory Alerts2022-11-02
Net Stable Funding Ratio
The Supervisor of Banks issues this directive to adopt Basel III Net Stable Funding Ratio standards for the Israeli banking system, requiring a minimum ratio of 100 percent. The regulation mandates that banking corporations maintain a stable funding profile commensurate with their assets and off-balance-sheet activities to enhance liquidity resilience. It establishes detailed calculation methodologies for available and required stable funding, including specific factors for various liabilities and assets, while applying on a consolidated basis with exceptions for joint service companies and foreign banks.
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