Basel Committee finds European Union largely compliant with its Net Stable Funding Ratio and large exposures framework global standards

• Basel Committee publishes assessment reports on the implementation of the Net Stable Funding Ratio and large exposures framework in the European Union.
• Assessments find European regulations largely compliant with the Basel Committee's global standards. 
• These publications form part of the Committee's Regulatory Consistency Assessment Programme.

The European Union's implementation of the Net Stable Funding Ratio (NSFR) and large exposures framework (LEX) are largely compliant with the global standards set by the Basel Committee on Banking Supervision, according to reports published today (NSFR, LEX). 

The Basel Committee's assessment reports on the NSFR and LEX form part of its Regulatory Consistency Assessment Programme (RCAP), a series of reports on the implementation of Basel standards by member jurisdictions of the Basel Committee.

The Basel Committee has completed its review of the implementation of the initial risk-based capital standards and Liquidity Coverage Ratio (LCR) for all members and of the framework for global and domestic systemically important banks (G-SIBs and D-SIBs) for all member jurisdictions that were home to G-SIBs in 2016. 

Jurisdictional assessments of the implementation of the Basel Committee's NSFR and LEX global standards started in 2018 but were suspended in March 2020 following the outbreak of Covid-19.