Recital 1

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(1)Regulation (EU) 2019/876 of the European Parliament and of the Council ⁴ introduced into Regulation (EU) No 575/2013 of the European Parliament and of the Council ⁵ the net stable funding ratio (NSFR) requirement for credit institutions. That requirement reflected part of the Basel III standards agreed by the Basel Committee on Banking Supervision (BCBS), which were developed to ensure that credit institutions have sufficient stable funding on a one-year horizon, and thus to prevent an excessive maturity mismatch between assets and liabilities and an overreliance on short-term wholesale funding. The NSFR requirement has been applicable since 28 June 2021.

5 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 ( OJ L 176, 27.6.2013, p. 1 , ELI: http://data.europa.eu/eli/reg/2013/575/oj ). ↩
4 Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012 ( OJ L 150, 7.6.2019, p. 1 , ELI: http://data.europa.eu/eli/reg/2019/876/oj ). ↩