Softer NSFR may not save repo, banks warn
Final version of NSFR makes sense on a bank-wide basis, sources say, but the industry is still trying to gauge its impact on certain businesses, including repo
Dealers are warning repo businesses will struggle to comply with new international rules on bank funding, even after regulators softened their stance.
"We're still running our internal numbers and back-testing individual businesses, but it's still not clear to us how economical those businesses will be, even with the new, lower funding requirements," says a regulatory specialist at one European bank.
The net stable funding ratio (NSFR) – the second of Basel III's two new liquidity ratios – tries
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