Problems with the NSFR

Basel III’s Net Stable Funding Ratio (NSFR) was described in a previous blog. This piece identifies some of the undesirable impacts of the proposal. Unsecured versus secured funding One of most notable features of the NSFR is that unsecured and secured funding sources are given the same ASF factors. In the case of interbank funding…

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An introduction to the NSFR for repo dealers in a rush

The NSFR is a key Basel III reform to promote a more resilient banking sector by limiting over-reliance on short-term wholesale funding. It is designed to complement the Liquidity Coverage Ratio (LCR) but, whereas the LCR focuses on cashflow behaviour under market-wide liquidity stresses over 30 days, the NSFR looks at the resilience of the…

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Tsinghua University PBC School of Finance Summer Program Scholarship

Thank you to everyone who applied for the Tsinghua University PBC School of Finance Summer Program Scholarship offered by the ICMA Centre. We had many entries all of a very high quality. After much deliberation the panel have chosen the winners, and they have now been informed and accepted their offers. If you were unsuccessful…

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The FT, the Fed and the FRRP

An article in the FT on 21 March reported that “The Federal Reserve has assumed a much bigger role in a key funding market that had long been a prime component of the unregulated shadow banking system, reflecting central bank concerns that it poses a systemic risk”. The market, identified only as the repo market,…

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Why Voluntary Annuitization is Not Good News for Most People

By Professor Charles Sutcliffe, ICMA Centre The Chancellor of the Exchequer has announced that from April 2015 members of defined contribution pension schemes will be permitted to take their entire pension pot as a lump sum anytime from the age of 55 onwards. This means that defined contribution schemes will effectively cease to be pension schemes…

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RUSU, sports groups, societies and the Holi festival

Reading University Students’ Union (RUSU) is run by students for students. In 2012, RUSU was voted one of the top 20 student unions in the UK (National Student Survey 2012), and it is renowned for pushing key projects that benefit Reading students. RUSU is home to over a 100 sports clubs and societies, all offering different experiences.  Each sport…

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Tsinghua University PBC School of Finance Summer Program Scholarship

Calling all current ICMA Centre students- Do you want an opportunity to visit and study in China for two weeks this Summer? There are three Tsinghua University PBC School of Finance Summer Program Scholarships up for grabs! Apply by Friday 28th March. More details at this link.

Unknown Unknowns

One of the challenges of careers advice is to help people understand things that they didn’t even know existed – the Unknown Unknowns. For the avoidance of doubt (phrase stolen from Robert Peston) – what I mean is, people tend to book an appointment with us to discuss a problem – how to write a…

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Revisions to the Basel Leverage Ratio — a correction

The previous version of this blog questioned why, when the Basel Committee on Banking Supervision issued a revision to the Leverage Ratio in January 2014, it had not allowed the netting of collateral in matched positions with the same counterparty. There is a good reason for this and, I am afraid, the previous blog got…

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