Basel concession strengthens US opposition to NSFR

Lobbyists say change to gross derivatives liabilities measure shows the whole ratio is flawed

Add-on woes: Basel's ratio adjustment has done little to dampen the hostility of US banks to the whole concept

US regulatory agencies face an uphill struggle to finalise the net stable funding ratio (NSFR), despite a recent concession from the Basel Committee that would allow national authorities to soften the treatment of derivatives liabilities.

The Basel Committee announced in October that it was “considering whether any further revisions to the treatment of derivative[s] liabilities are warranted and, if so, will undertake a public consultation on any proposed changes”. In the meantime, it allowed