US bank regulatory agencies have approved a proposed rule that would implement for large US banking organizations the net stable funding ratio (NSFR), a quantitative liquidity standard adopted in 2014 by the Basel Committee on Banking Supervision. The proposed rule would apply the NSFR to the approximately 15 largest US banking organizations and to their consolidated subsidiaries that are depository institutions with $10 billion or more in total consolidated assets. A modified version of the NSFR would apply to certain depository institution holding companies with assets of at least $50 billion. The Federal Reserve intends to develop a separate NSFR for those foreign banking organizations with at least $50 billion in combined US assets.
The proposed rule would take effect on January 1, 2018, and public comment on the proposal is due by August 5, 2016.