Danish FSA to Implement Net Stable Funding Ratio in Denmark
Danish FSA announced that the funding ratio benchmark will be deleted from the DFSA supervisory requirements for banks because the purpose of this benchmark will, in future, be covered by the net stable funding ratio (NSFR) requirement. The EU NSFR statutory requirement will enter into force for the Danish credit institutions on June 28, 2021 and the funding ratio benchmark will remain a valid requirement until then.
To ensure a smooth transition, where there is an opportunity for adequate supervision of the institutions' stable funding throughout the period, the funding ratio benchmark will apply until the end of the second quarter of 2021. Institutions will be only required to report NSFR on August 11, 2021. The institutions in the Faroe Islands and Greenland are not subject to the NSFR requirement and, therefore, the funding ratio benchmark for these institutions has been maintained. When NSFR enters into force in the Faroe Islands and Greenland, the funding ratio benchmark will similarly be deleted for the Faroese and Greenlandic institutions.
Related Links (in English and Danish)
Keywords: Europe, Denmark, Banking, NSFR, Basel, Funding Ratio Benchmark, Liquidity Risk, DFSA
Featured Experts
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.