[PDF] nsfr

What does NSFR stand for?

The second standard - the Net Stable Funding Ratio (NSFR) - aims to promote resilience over a longer time horizon by creating incentives for banks to fund their activities with more stable sources of funding on an ongoing basis. Private incentives to limit excessive reliance on unstable funding of core (often illiquid) assets are weak.

What is the National stable funding ratio (NSFR)?

• By mandating that banking organizations maintain sufficient stable funding over a one-year time horizon, the NSFR would complement the agencies’ liquidity coverage ratio (LCR) rule, which focuses on short-term liquidity risk. 2 • The draft final rule is generally similar to the NSFR proposal from June 2016,

When did NSFR become a minimum standard?

The NSFR became a minimum standard applicable to all internationally active banks on a consolidated basis on 1 January 2018, although national supervisors may also apply it to any subset of entities of large internationally active banks or to all other banks. Banks must meet the NSFR requirement on an ongoing basis and report on a quarterly basis.

What is the NSFR numerator?

Under the draft final rule, a banking organization’s available stable funding amount, the numerator of the NSFR, would measure the stability of its regulatory capital elements and liabilities.