net stable funding ratio (NSFR)

What is net stable funding ratio (NSFR)?

net stable funding ratio (NSFR) definition and meaning on Finance terms:
The amount of available stable funding relative to the amount of required stable funding. Available stable funding is the portion of capital and liabilities that is expected to be stable over a one-year time horizon. The amount of funding required of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance sheet (OBS) exposures. The NSFR should be equal to or higher than 100% and the Basel minimum standard will be introduced in 2018. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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