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Technical clarification allows subsidiary capital to be assigned as funding for consolidated group Print this page
A seemingly minor clarification in the final US net stable funding ratio (NSFR) could represent a major change to how bankers interpret the rule, by effectively allowing large banks to assign funding more easily across the group in order to comply with the ratio at a consolidated level.
“Everybody was so happy about it,” says one senior regulation official at a global systemically important bank (G-Sib). “It’s a big, big, big benefit.”
Two other liquidity managers from G-Sibs confirm this
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Banks worldwide have built up liquidity buffers post-Covid
Of the 47 lenders covered by
Risk Quantum that disclosed LCR data as of Q3, 34 (72%) reported higher LCRs at end-September than nine months prior. The average LCR sample-wide was 152%, up from 143%.
Banks in Japan had the highest LCRs of the sample as of end-September. The five banks from the country surveyed had an average LCR of 207% as of end-September, up from 200% nine months prior
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