The European Commission (EC) issued a consultation on the prudential treatment of short-term securities financing transactions related to the net stable funding ratio (NSFR).
The proposed regulation would amend the regulation on prudential requirements for credit institutions and investment firms. The amendment would render permanent the currently transitory treatment of short-term securities financing with financial customers for the calculation of the net stable funding ratio.
“This would avoid any lapse in the current treatment and help to ensure an international level playing field in the treatment of short-term securities financing transactions,” the EC wrote.