MONETARY authorities have approved a new liquidity requirement aimed at bolstering a bank’s ability to withstand financial shocks, the Bangko Sentral ng Pilipinas (BSP) announced on Monday.

Universal and commercial banks (UK/Bs), along with select subsidiaries, will have to comply with the Basel III requirement known as the net stable funding ratio (NSFR), adopted by the BSP’s policymaking Monetary Board as part of ongoing efforts to strengthen the domestic banking industry.