Targeted amendment on the prudential treatment of reverse repos under the Net Stable Funding Ratio.

We, at RBI Group, would like to express our full support for the European Central Bank's argumentation and proposal to maintain the current transitory Required Stable Funding (RSF) factors for reverse repo operations. Adopting the Basel rates would result in an increase in the volume of RSF at banks, leading to a potentially significant reduction in their NSFR.

ICMA and its European Repo and Collateral Council (ERCC) welcome the Commissions publication of a Call for Evidence on a targeted amendment on the prudential treatment of SFTs under the NSFR and we strongly support the proposal to "extend the current treatment also beyond 28 June 2025, and permanently".

CALL FOR EVIDENCE ON TARGETED AMENDMENT ON THE PRUDENTIAL TREATMENT OF SECURITIES FINANCING TRANSACTIONS UNDER THE NSFR The Spanish banking Association (AEB hereinafter) welcome the possibility to participate in the call for evidence launched by the European Commission (EC) to make permanent the current transitory prudential treatment for securities financing transactions (SFT) and unsecured transactions with a…

1. Feedback on the consultation from the European Money Market Expert Committee (EMMEC) EMMEC is STRONGLY supportive of the initiative to make permanent the current regime for prudential factors used in NSFR. Until June 2025 EU banks can apply lower RSF (Required Stable Funding) factors than set out under the Basel standards for certain short term instruments, notably secured financing transactions (SFT), aka repo /…

The French Banking Federation (FBF) welcomes the opportunity to express the views of the French banking industry on the call for evidence launched by the European Commission (Commission) on a targeted amendment on the prudential treatment of short-term Securities Financing Transactions (SFT) and unsecured transactions under the Net Stable Funding Ratio (NSFR).

Banca CF+ strongly supports the European Commission proposal aimed at making permanent the current transitory prudential treatment for SFT and unsecured transactions with a residual maturity of less than six months, with financial customers, for the purpose of the Net Stable Funding Requirement (NSFR) (i.e. to extend the current treatment also beyond 28 June 2025, and permanently).

Intesa Sanpaolo strongly supports the European Commissions initiative to extend permanently the application of the current 0%, and 5% RSF factors for reverse repos with maturity shorter than 6m and secured respectively by HQLA Level 1 assets and other collateral.

Finance Sweden welcomes the Commissions call for evidence on the targeted amendment regarding the prudential treatment of securities financing transactions under the Net Stable Funding Ratio (NSFR). The association concurs with the Commissions understanding of the issue and the proposed solutions.

ESBG and its members generally support the arguments put forward by the European Commission as regards the decision to make permanent the prudential treatment for short-term securities financing trans-action (SFT) and unsecured transactions with a residual maturity below six months. However, it is important to note that said arguments focus largely on secured funding provided to other financial participants.

Finance Denmark appreciates the opportunity to provide feedback on the targeted amendment regarding the prudential treatment of securities financing transactions under the Net Stable Funding Ratio (NSFR). Finance Denmark strongly supports the initiative to make permanent the current transitory prudential treatment for securities financing transactions (SFT) and unsecured transactions with a residual maturity of less…

Deutsche Börse Group strongly welcomes the European Commissions resolve to make the current transitory NSFR regime for securities financing transactions (SFTs) permanent. Upon the implementation of the NSFR in June 2021, European banks did not face significant challenges in adapting to the requirements due to the ECBs generous Targeted Long Term Refinancing Operations (TLTRO).

Dear Sir or Madam, The arguments summarized in the EC Call for Evidence paper are true and fully supported. They largely focus on secured funding provided to other financial participants. However, it should be emphasized that many of the arguments mentioned also apply to unsecured placements. To be more precise: 1.

We welcome and fully support the European Commissions proposal to maintain the RSF factors applicable to short-term secured and unsecured lending transactions with financial counterparties to their current level of 0%, 5% and 10% permanently, absent which they will revert to the higher 10% and 15% factors set out in the Basel standards by June 2025.

Mediobanca Banca di Credito Finanziario Spa, on behalf of its banking group, supports the European Commission's initiative to make permanent the current transitory prudential treatment for SFT and unsecured transactions with a residual maturity of less than six months, with financial customers, for the purpose of the Net Stable Funding Requirement (NSFR).

Repo transactions play a vital role within the financial system and underpin the functioning of primary and secondary capital markets in addition to the shorter-term money markets. More broadly, the repo market promotes the more efficient use of available tradeable stock for collateral management, and is closely linked to the sovereign debt market1.

UniCredit supports the European Commission's Call for Evidence for an initiative in relation to the treatment of reverse repos and unsecured lending under the Net Stable Funding Ratio (NSFR) requirement. We agree with the Commission's description and assessment of the very significant issues that would be caused through the reversion of RSF factors for reverse repo and unsecured transactions to the levels of 10% and…

Banca Monte dei Paschi di Siena S.p.A. (BMPS) is the fifth-largest bank in Italy, with reported total assets of around 123 billion as of 31st December 2024. MPS offers retail and commercial banking, and other financial services to retail customers, SMEs and large corporations, mainly in Italy.

The European Banking Federation supports the initiative to make permanent the current transitory prudential treatment for securities financing transactions (SFT) and unsecured transactions with a residual maturity of less than six months, with financial customers, for the purpose of the Net Stable Funding Ratio (NSFR).

The European Association of Co-operative Banks (EACB) supports the European Commission (EC) initiative to make permanent the current transitory prudential treatment for secured funding transactions (SFT) and unsecured transactions with a residual maturity of less than six months with financial customers, for the purpose of the Net Stable Funding Requirement (NSFR).

ABI (shared at European level EBF) strongly supports the European Commission proposal aimed at making permanent the current transitory prudential treatment for SFT and unsecured transactions with a residual maturity of less than six months, with financial customers, for the purpose of the Net Stable Funding Requirement (NSFR) (i.e. to extend the current treatment also beyond 28 June 2025, and permanently).

AFME and its members have noted the European Commissions Call for Evidence for an initiative in relation to the treatment of reverse repos and unsecured lending under the NSFR standard. The industry considers it essential that an initiative is issued from the European Commission to extend permanently the application of the current 0%, 5% and 10% RSF factors for reverse repos secured by Level 1 HQLA and non-Level 1…

The Romanian Association of Banks (RAB) supports the proposed amendment that would render permanent the currently transitory treatment of short-term securities financing with financial customers for the calculation of the net stable funding ratio. One of our main arguments refers to the need for an international level playing field in the treatments imposed by the European regulation.

Assiom Forex recommend the introduction of a legislative proposal to ensure that RSF can remain at the current levels of 0% and 5%, for less than 6 month transactions secured by level 1 HQLA and non Level 1 HQLA respectively. The reasons of our recommendation are mainly related to: - Need to have of a common playing field with the treatments in other major jurisdictions, e.g.

The arguments summarised in the EC Call for Evidence paper are true and fully supported. They broadly focus on secured funding provided to other financial participants. However, it should be emphasised that many of the arguments mentioned thus apply to unsecured placements. To be more precise: 1. The disadvantages compared to other jurisdictions outside the EU that have adopted the lower RSF weights permanently 2.

Filed in German · English published by the European Commission