Regulatory Alerts2021-06-21
Net Stable Funding Ratio
The Supervisor of Banks of Israel issued this directive to implement the Basel III Net Stable Funding Ratio (NSFR) standard within the Israeli banking system. It requires banking corporations to maintain an NSFR of at least 100 percent by ensuring their available stable funding covers their required stable funding, thereby limiting reliance on short-term wholesale funding. The regulation specifies calculation methodologies, reporting frequencies, and exemptions for certain entities such as acquirers and small foreign bank branches.
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