China’s banking regulator issued rules on Tuesday covering commercial banks’ disclosure of their net stable funding ratio (NSFR) in compliance with a requirement set by the global financial regulatory framework known as Basel III, said Caixin.
Banks will be required to disclose their NSFR every six months under the rules released by the China Banking and Insurance Regulatory Commission (CBIRC).
NSFR is a key element of the Basel III framework which was drawn up after the global financial crisis of 2008, aiming to ensure that banks hold a minimum amount of stable funding based on the liquidity of their assets and activities over a one-year horizon.
The NSFR requirement, which applies to lenders with assets of more than $31.2 billion, came into effect in China last July, with the regulator requiring banks’ NSFR to reach at least 100%. China is set to assess the implementation of the NSFR requirement in November, according to the Basel III timetable.