BEGIN:VCALENDAR VERSION:2.0 METHOD:PUBLISH PRODID:-//Telerik Inc.//Sitefinity CMS 12.2//EN BEGIN:VTIMEZONE TZID:Eastern Standard Time BEGIN:STANDARD DTSTART:20231102T020000 RRULE:FREQ=YEARLY;BYDAY=1SU;BYHOUR=2;BYMINUTE=0;BYMONTH=11 TZNAME:Eastern Standard Time TZOFFSETFROM:-0400 TZOFFSETTO:-0500 END:STANDARD BEGIN:DAYLIGHT DTSTART:20230301T020000 RRULE:FREQ=YEARLY;BYDAY=2SU;BYHOUR=2;BYMINUTE=0;BYMONTH=3 TZNAME:Eastern Daylight Time TZOFFSETFROM:-0500 TZOFFSETTO:-0400 END:DAYLIGHT END:VTIMEZONE BEGIN:VEVENT DESCRIPTION:The net stable funding ratio (&ldquo\;NSFR&rdquo\;) is one of t he remaining Basel III reforms. \; In short\, the NSFR requires banks to maintain a stable funding profile in relation to their assets and off-b alance sheet activities. \; \nThe immediate impact will be two-fold: ( 1) the long-term funding costs required under the NSFR limit will discoura ge dealer involvement in derivatives and derivatives-related transactions\ , effectively reducing liquidity in the market that end-users rely on to h edge risk\; and (2) costs associated with capital-raising in a less liquid market would inevitably be borne by derivatives end-users and consumers. In fact\, there are specific &ldquo\;add-on&rdquo\; charges for corporate end-users\, especially with respect to derivatives. \; For example\, d ealer counterparties are required provide required stable funding for 20% of the negative replacement cost of derivative liabilities (before deducti ng variation margin posted). \; This is essentially a 20% &ldquo\;tax& rdquo\; on a derivatives trade\, even if a bank has a stable funding profi le before the 20% add-on. This webinar \;focuses on these issues and s uggest ways that they could be changed. \; DTEND:20181231T210000Z DTSTAMP:20240328T183406Z DTSTART:20161121T200000Z LOCATION: SEQUENCE:0 SUMMARY:How the Net Stable Funding Ratio Impacts Corporate Treasury UID:RFCALITEM638472296469593760 X-ALT-DESC;FMTTYPE=text/html:
The net stable funding ratio (&ldquo\;NSFR& rdquo\;) is one of the remaining Basel III reforms. \; In short\, the NSFR requires banks to maintain a stable funding profile in relation to th eir assets and off-balance sheet activities. \;
\nThe immediate impact will be two-fold: (1) the long-term funding costs required under t he NSFR limit will discourage dealer involvement in derivatives and deriva tives-related transactions\, effectively reducing liquidity in the market that end-users rely on to hedge risk\; and (2) costs associated with capit al-raising in a less liquid market would inevitably be borne by derivative s end-users and consumers. In fact\, there are specific &ldquo\;add-on&rdq uo\; charges for corporate end-users\, especially with respect to derivati ves. \; For example\, dealer counterparties are required provide requi red stable funding for 20% of the negative replacement cost of derivative liabilities (before deducting variation margin posted). \; This is ess entially a 20% &ldquo\;tax&rdquo\; on a derivatives trade\, even if a bank has a stable funding profile before the 20% add-on. This webinar \;fo cuses on these issues and suggest ways that they could be changed. \;< /p> END:VEVENT END:VCALENDAR