Joint Release/Agencies Issue Final Rule to Strengthen Resilience of Large Banks — 2020-10-20

Board of Governors of the Federal Reserve System Joint Release Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Agencies Issue Final Rule to Strengthen Resilience of Large Banks The federal bank regulatory agencies on Tuesday finalized a rule strengthening the resilience of large banks by requiring them to maintain a minimum level of stable funding over a one-year period. The net stable funding ratio, or NSFR, final rule will require large banks to maintain a minimum level of stablse funding, relative to each institution’s assets, derivatives, and commitments. As a result, the NSFR rule will support the ability of banks to lend to households and businesses in both normal and adverse economic conditions by reducing liquidity risk and enhancing financial stability.