Banks in the European Union have less than a year to raise 159 billion euros ($168.33 billion) to comply with new rules designed to make sure they have enough money to meet long-term demands on their finances, the EU bank watchdog said on Tuesday.
The European Banking Authority said the shortfall was in relation to the new net stable funding ratio, or NSFR, which requires banks to maintain a minimum source of longer-term funding from January 2018.
While the average funding ratio across EU banks sampled by the EBA was above the 100 percent minimum at 107.8 percent, there was a shortfall of 158.7 billion euros due to some banks being below 100 percent, the EBA said. This NSFR shortfall is equivalent to just 1.7 percent of the 9.1 trillion euros in total assets the non-compliant banks hold, the EBA said. "Compared with previous periods, there has been a continuous increase in banks' NSFR, which is mainly driven by the increasing amount of available stable funding," the watchdog said.
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