The Net Stable Funding Ratio (NSFR) is a Basel III liquidity standard that requires banks to maintain sufficient stable funding relative to their assets and off-balance-sheet activities over a one-year horizon. The minimum NSFR is 100%.
Components
Available Stable Funding (ASF) — Equity, preferred stock, deposits with maturity > 1 year, and other reliable funding sources
Required Stable Funding (RSF) — Amount of stable funding needed based on the liquidity characteristics and residual maturity of assets