Basel’s Bank Funding Disclosure Proposal: A Good Start, But It Does Not Go Far Enough

Basel’s Bank Funding Disclosure Proposal: A Good Start, But It Does Not Go Far Enough

On Dec. 9, 2014, the Basel Committee on Banking Supervision published a consultative document on its proposed net stable funding ratio (NSFR) disclosure standards, under which banks will disclose the proportion of their long-term assets that are funded by long-term, stable funding. The committee intends to introduce the NSFR as a minimum standard by Jan. 1, 2018. The main purpose of the NSFR is to reduce refinancing risks for banks by requiring them to better match their asset and liability profiles, while allowing banks to perform maturity transformation that serves economic needs. The disclosure standards aim to improve transparency and enhance market discipline. In this article, we provide our analytical opinion of the proposed disclosure standards based on our understanding of the document.

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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