Release Date: October 31, 2014
Contact: Carol Danko, 202.962.7390, firstname.lastname@example.org
GFMA Statement on the Net Stable Funding Ratio Final Rule
Washington, DC, October 31, 2014– GFMA today issued the following statement from Kenneth E. Bentsen, Jr., GFMA CEO and SIFMA president and CEO on the final rule for the Net Stable Funding Ratio (“NSFR”) issued by the Basel Committee on Banking Supervision:
“GFMA appreciates the Basel Committee’s work on the Net Stable Funding Ratio. We support the goals underlying the NSFR, including limiting over reliance on short-term wholesale funding, encouraging better assessment of funding risks across all on- and off balance sheet items, and promoting funding stability. If the NSFR is not calibrated properly, the rule could impact liquidity in a way that would reduce the ability to manage risk, increase volatility, and reduce returns for investors. We look forward to reviewing today’s final rule in greater detail and understanding its impact on GFMA’s member firms and the global economy.”
The announcement was made by the Basel Committee on Banking Supervision today.
The Global Financial Markets Association (GFMA) brings together three of the world’s leading financial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy efforts. The Association for Financial Markets in Europe (AFME) in London and Brussels, the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington are, respectively, the European, Asian, and North American members of GFMA. – See more at www.gfma.org.