U.S. banking regulators set to finalize new net stable funding ratio for large banks

WASHINGTON (Reuters) – A trio of U.S. banking regulators are set to move Tuesday on finalizing a pair of long-running rulewriting projects aimed at ensuring banks have enough liquidity while minimizing volatility.

One rule will establish the so-called Net Stable Funding Ratio (NSFR), a long-term liquidity requirement, for 20 large banks. The second rule ups standards on “total loss-absorbing capacity” (TLAC) debt, which is debt banks must issue to ensure they have quick access to equity in times of stress.