The Basel Committee on Banking Supervision has issued the second set of frequently asked questions (FAQs) and answers on Basel III’s Net Stable Funding Ratio (NSFR).
This is a pretty technical document, but does guide readers through the complex rules. Once again it underscores the journey to complexity which the Basel Committee has been on.
To promote consistent global implementation of these requirements, the Committee periodically reviews frequently asked questions and publishes answers along with any necessary technical elaboration of the rules text and interpretative guidance. The Committee has received a number of interpretation questions related to the October 2014 publication of the NSFR standard. The FAQs published today correspond to the text set out in that standard.