Regulatory Alerts2017-10-13
Added · Updated
Proposed Amendments to Regulation on Supervision of Banking Business
The Financial Services Commission proposes amendments to the Regulation on Supervision of Banking Business to implement the net stable funding ratio (NSFR) and the leverage ratio. The proposed rules set a minimum NSFR of 100 percent for banks to ensure stable funding sources and reduce longer-term funding risk, alongside a minimum leverage ratio of 3 percent to control excessive leveraging. These changes are subject to public comment until November 19, 2017.
Laws and Regulations Announcement Amendments Proposed to Regulation on Supervision of Banking Business Agency: Financial Services Commission Proposed amendment: Regulation on Supervision of Banking Business FSC Notice number: 2017-273 Announcement date: October 13, 2017 Summary: The Financial Services Commission proposed amendments to the Regulation on Supervision of Banking Business for the implementation of the net stable funding ratio (NSFR) and the leverage ratio as set by the Basel Committee on Banking Supervision. Key provisions: The NSFR will be implemented to ensure banks employ stable sources of funding for their operational activities and reduce their longer-term funding risk. The minimum NSFR for banks is to be set at 100 percent. New leverage ratio will be implemented to control excessive leveraging by banks. The minimum ratio is to be set at 3 percent. Public comment for the proposed amendments: The public comment period for the proposed rule changes ends on November 19, 2017.