In the calamity of the financial crisis, many financial institutions failed under the immense pressure or experienced traumatic hardships, mostly due to a lack of liquidity. Under a newly proposed rule, the largest U.S. banks will have to prove that they have enough cash set aside for business operations up to a year to lower liquidity risk among the institutions to reduce the chances of yet another crash.
On Tuesday, the FDIC, the Federal Reserve, and the OCC unveiled details of the proposed Net Stable Funding Ratio rule. According to the Martin J. Gruenberg Chairman of the FDIC, the suggested regulation would quote ensure that lending and investing activities of large banking organizations are sufficiently supported by sources of stable funding over a one-year horizon close quote.
The S&P/Case-Shiller U.S. National Home Price Index found that home prices 5 point 3 percent year-over-year in February 2016, the same as last month. Month-over-month, home prices only rose 0 point 2 percent. Ralph McLaughlin, Chief Economist at Trulia said quote While one month does not make a trend, this is a sign that the U.S. housing market may be stabilizing in the wake of strong price appreciation between 2012 and 2014 close quote.