2021-02-11 | 2020-26546

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Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements

The OCC, Federal Reserve Board, and FDIC adopted a final rule implementing the Net Stable Funding Ratio (NSFR) requirement for U.S. banking organizations and foreign bank subsidiaries with $100 billion or more in total consolidated assets. The rule mandates that these covered companies maintain sufficient stable funding to support their assets, commitments, and derivatives exposures over a one-year horizon, with compliance thresholds calibrated by risk-based measures. It further requires public disclosure of the NSFR and its components every second and fourth calendar quarter for the preceding two quarters to enhance transparency and mitigate liquidity risk.

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