Apr
26
Big Banks Forced to Rely on Long-Term Funding in U.S. Plan
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Regulators seeking comment on post-crisis liquidity standard
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Net stable funding ratio encourages lenders to favor deposits
Some Wall Street firms would have to further curtail their reliance on volatile short-term funding under a plan by U.S. regulators that seeks to ensure every big bank can endure months of financial stress.
Lenders would be required to depend on stable funding from sources such as deposits, according to a proposal written by the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Federal Reserve. Most megabanks already comply with the plan, which aims to guarantee each has sufficient funding to survive for as long as a year…
Big Banks Forced to Rely on Long-Term Funding in U.S. Plan
