Basel Committee issues proposed technical amendment to the Net Stable Funding Ratio

At its meeting in December 2017, the Basel Committee on Banking Supervision established a procedure for issuing technical amendments to its standards. Technical amendments are defined as changes to standards that are not substantial in nature but that cannot be unambiguously resolved based on the current text. The expectation is that technical amendments will be published for public comment for 45 calendar days. Technical amendments differ from responses to frequently asked questions (FAQs), which clarify the intention and interpretation of the standards but do not require any change to the standards and are therefore published without public consultation. The Committee will continue to publish responses to FAQs in the future.

The Committee today published its first proposed technical amendment, which is related to the treatment of extraordinary monetary policy operations in the Net Stable Funding Ratio. To provide greater flexibility in the treatment of extraordinary central bank liquidity-absorbing monetary policy operations, the technical amendment proposes to allow reduced required stable funding factors for central bank claims with maturity of more than six months.

The Committee invites comments on the proposed amendment by 5 February 2018. All comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.