During the extended observation period, the regulator said banks are required to comply with a 70 percent LCR and NSFR floor, with the minimum LCR and NSFR requirements still at 100 percent upon effectivity date. BSP gives big banks more time to build up liquidity The EBA report on liquidity...
NSFR and the LCR are both capital requirements that a bank must meet in order to be deemed stable. However, they serve different purposes. The LCR is a liquidity requirement while NSFR is a funding requirement. In addition, the LCR only focuses on thirty days of liquidity coverage while NSFR...
In the longer run, there could be negative repercussions for the LCR and NSFR if the nonbanks decide to rebalance their deposit mixes, especially by reducing their long-term deposits to mitigate the outflows of short-term ones. What are the potential...