Repo desks up in arms about NSFR

The cost of some repo transactions would leap 850% under a draft version of the NSFR, banks claim. One regulator admitted last week there could be unintended harm to the market and implied the rules could change

Basel Committee on Banking Supervision headquarters

Bank lobbyists are mobilising to combat a new threat to the repo market, which they claim could drive up the cost of some transactions by more than 850% – from seven basis points today, to 67bp if Basel III's net stable funding ratio (NSFR) is implemented as outlined in January. That could filter back into financing costs, with investors demanding more yield to make up for the cost of borrowing securities, and would dramatically cut the liquidity available in reverse repo markets, bankers warn.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here