Other banking regulators are expected to follow the FDIC’s lead.
Photo: Andrew Harrer/Bloomberg News
WASHINGTON—U.S. financial regulators moved Tuesday to adopt new rules obliging large banks to hold enough funding to meet their needs for up to a year.
The board of the Federal Deposit Insurance Corp. voted 3-1 to approve the final rule to set a so-called net stable funding ratio. Other banking regulators, the Office of the Comptroller of the Currency and the Federal Reserve Board, were expected to follow suit.
The requirement, which applies to 20 large banks effective July 2021, is part of a coordinated effort by international bank regulators to address a source of instability that contributed to the 2007-09 financial crisis.
(More to come)
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