NSFR Results
—
Net Stable Funding Ratio
$0M
Available Stable Funding
$0M
Required Stable Funding
$0M
Funding Surplus / (Deficit)
ASF Component Breakdown
| Funding Source | Weight | Amount | Weighted |
|---|---|---|---|
| Total ASF | $0M | ||
RSF Component Breakdown
| Asset Category | Weight | Amount | Weighted |
|---|---|---|---|
| Total RSF | $0M | ||
Understanding the NSFR
What is the Net Stable Funding Ratio?
The Net Stable Funding Ratio (NSFR) is a Basel III liquidity standard that measures whether a bank has sufficient stable funding to support its assets over a one-year time horizon. It complements the Liquidity Coverage Ratio (LCR), which focuses on short-term (30-day) liquidity stress.
NSFR Formula:
NSFR = Available Stable Funding (ASF) / Required Stable Funding (RSF) ≥ 100%
Available Stable Funding (ASF)
ASF represents the portion of capital and liabilities expected to be reliable over a one-year horizon. Funding sources receive weights based on their stability:
- 100% weight: Regulatory capital and long-term debt (most stable)
- 90-95% weight: Retail deposits (behaviorally stable)
- 50% weight: Wholesale funding with 6-12 month maturity
- 0% weight: Short-term wholesale funding (least stable)
Required Stable Funding (RSF)
RSF represents the stable funding required to support a bank's assets. Assets receive weights based on their liquidity characteristics:
- 0% weight: Cash and central bank reserves (most liquid)
- 5-15% weight: High-quality liquid assets (Level 1 and 2A)
- 65-85% weight: Loans and less liquid assets
- 100% weight: Illiquid assets and non-performing loans
Interpreting Results
≥ 100%
Compliant: Bank has sufficient stable funding
< 100%
Non-Compliant: Funding shortfall exists
Model Assumptions
- Simplified Educational Estimator — Uses representative Basel III weights for illustration
- 1-year structural liquidity horizon per Basel III framework
- ASF weights based on funding source stability characteristics
- RSF weights based on asset liquidity and encumbrance status
- Excludes: Off-balance-sheet exposures, derivatives, encumbered assets, 50% RSF bucket details
- Actual regulatory calculations may vary by jurisdiction
Frequently Asked Questions
The NSFR is a Basel III liquidity standard that requires banks to maintain a stable funding profile relative to their assets and off-balance sheet activities. It measures whether a bank has sufficient stable funding to support its assets over a one-year horizon. The minimum requirement is 100%, meaning Available Stable Funding must equal or exceed Required Stable Funding.
LCR measures short-term liquidity resilience over a 30-day stress period, requiring banks to hold enough high-quality liquid assets to cover net cash outflows. NSFR measures structural liquidity over a one-year horizon, ensuring funding sources are appropriately matched to asset maturities. LCR addresses acute stress; NSFR addresses ongoing funding stability.
Retail deposits (including small business deposits) receive higher ASF factors (90-95%) because they are behaviorally more stable. Individual depositors are less likely to withdraw funds en masse compared to institutional investors, who may pull wholesale funding quickly during market stress. This was demonstrated during the 2008 financial crisis when wholesale funding markets froze.
A bank with NSFR below 100% typically must notify regulators and submit a remediation plan to restore compliance. Heightened supervisory attention follows, and depending on the jurisdiction and severity, additional measures such as restrictions on certain activities or distributions may be imposed. The specific consequences vary by regulatory jurisdiction.
The Basel Committee on Banking Supervision established the weights based on the expected behavioral characteristics of funding sources and the liquidity characteristics of assets. Factors include maturity, counterparty type, deposit insurance, customer relationships, collateral, encumbrance status, and off-balance-sheet commitments. National regulators may apply some discretion within Basel guidelines.
Banks generally manage NSFR with a buffer above the 100% minimum to avoid breaching the threshold. The target varies by business model, jurisdiction, and risk appetite. Recent Basel monitoring data shows average NSFRs well above 100% for most bank groups, but the optimal level balances regulatory safety against the higher cost of long-term funding.
Disclaimer: This calculator is for educational purposes only. It uses simplified Basel III weights and does not account for all factors in actual regulatory NSFR calculations. Consult qualified professionals for regulatory compliance decisions.
