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B-333025 Mar 05, 2021 1 (2021-03-05)

handle is hein.gao/gaolii0001 and id is 1 raw text is: 1Oo) U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Washington, DC 20548 B-333025 March 5, 2021 The Honorable Sherrod Brown Chairman The Honorable Patrick J. Toomey Ranking Member Committee on Banking, Housing, and Urban Affairs United States Senate The Honorable Maxine Waters Chairwoman The Honorable Patrick McHenry Ranking Member Committee on Financial Services House of Representatives Subject: Department of the Treasury, Office of the Comptroller of the Currency; Federal Reserve System; Federal Deposit Insurance Corporation: Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of the Treasury, Office of the Comptroller of the Currency (OCC); Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies), entitled Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements (RINs: 1557-AD97; 7100-AE51; 3064-AE44). We received the rule on February 19, 2021. It was published in the Federal Register as a final rule on February 11, 2021. 86 Fed. Reg. 9120. The effective date of the rule is July 1, 2021. The final rule implements a stable funding requirement, known as the net stable funding ratio (NSFR), for certain large banking organizations. According to the agencies, this rule establishes a quantitative metric, the NSFR, to measure the stability of the funding profile of certain large banking organizations and requires these banking organizations to maintain minimum amounts of stable funding to support their assets, commitments, and derivatives exposures over a 1 year time horizon. The agencies state that NSFR is designed to reduce the likelihood that disruptions to a banking organization's regular sources of funding will compromise its liquidity position, promote effective liquidity risk management, and support the ability of banking organizations to provide financial intermediation to businesses and households across a range of market conditions. The agencies also state that NSFR supports financial stability by requiring banking organizations to fund their activities with stable sources of funding on an ongoing basis, reducing the possibility that funding shocks would substantially increase distress at individual banking organizations.

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