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ABCP Perspectives on Net Stable Funding Ratio, Leverage Ratio and Regulation AB II

March 12, 2014

Three recent regulatory initiatives could impact the ABCP market:

  1. Net Stable Funding Ratio Proposal - In January 2014, the Basel Committee on Banking Supervision published a Consultative Document presenting a net stable funding ratio (NSFR) requirement that will require banks to maintain a stable funding profile in relation to the composition on their assets and off-balance sheet activities.  Comments are due on April 11, 2014.
  2. Leverage Ratio Requirement - In January 2014, the Basel Committee on Banking Supervision published its final Basel III leverage ratio framework and disclosure requirements, which will act as a supplement to the risk-based capital requirements.  Banks will be required to publicly disclose their Basel III leverage ratio on a consolidated basis from the date of publication of their first set of financial statements relating to a balance sheet on or after January 1, 2015.
  3. Regulation AB II Re-Open - In February 2014, the SEC re-opened the comment  period for Regulation AB II to solicit further public comment on a new approach to disseminate potentially sensitive asset-level data.  More specifically, the SEC is considering requiring issuers to make asset-level information available to investors and potential investors on a restricted Web site, rather than being filed on EDGAR.  The comment deadline is March 28, 2014.

For more information about these regulatory initiatives and their impact on the ABCP market, please click the link below.

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