Barclays exec: NSFR is magnifying bank leverage
Attempts to meet Basel III's net stable funding ratio are inflating leverage exposures, according to a Barclays fixed-income financing executive
Efforts to meet Basel III's liquidity requirements are inflating leverage exposures and creating extra costs for repurchase agreement businesses, a senior fixed-income executive at Barclays has claimed.
Michael Manna, head of fixed-income financing trading for Europe, the Middle East and Africa at Barclays, said efforts to raise more stable, longer-term financing for the net stable funding ratio (NSFR) – the second of Basel III's liquidity ratios – were inflating the bank's balance sheet.
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