Regulation (EU) 2019/876 of the European Parliament and of the Council introduced into Regulation (EU) No 575/2013 of the European Parliament and of the Council the net stable funding ratio (NSFR) requirement for credit institutions. That requirement reflected part of the Basel III standards agreed by the Basel Committee on Banking Supervision (BCBS), which were developed to ensure that credit institutions have sufficient stable funding on a one-year horizon, and thus to prevent an excessive maturity mismatch between assets and liabilities and an overreliance on short-term wholesale funding. The NSFR requirement has been applicable since 28 June 2021.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
