NSFR Calculator
Calculate the Net Stable Funding Ratio (NSFR), a key regulatory metric under Basel III that ensures banks maintain stable funding relative to their long-term assets and activities over a one-year horizon.
Available Stable Funding (ASF)
Required Stable Funding (RSF)
NSFR Results
Net Stable Funding Ratio:
0.00%
Available Stable Funding:
$0.00
Required Stable Funding:
$0.00
Regulatory Compliance
Minimum Requirement:
100%
Compliance Status:
N/A
Funding Gap:
$0.00
Risk Assessment
Funding Stability:
N/A
Liquidity Risk:
N/A
Structural Health:
N/A
Understanding the Net Stable Funding Ratio
The Net Stable Funding Ratio (NSFR) is a key regulatory metric under Basel III that ensures banks maintain stable funding relative to their long-term assets and activities over a one-year horizon. It complements the Liquidity Coverage Ratio (LCR) by focusing on structural liquidity.
NSFR Formula
Basic NSFR Formula
- NSFR = (Available Stable Funding / Required Stable Funding) × 100
- ASF = Available stable funding amount
- RSF = Required stable funding amount
- Minimum requirement = 100%
ASF Components
- Tier 1 and Tier 2 capital (100% ASF factor)
- Stable customer deposits (90-95% ASF factor)
- Less stable deposits (50-90% ASF factor)
- Wholesale funding (0-50% ASF factor)
RSF Components
Required Stable Funding Factors
High RSF Factors (85-100%)
- Loans to households (85% RSF)
- Loans to SMEs (85% RSF)
- Corporate loans (85% RSF)
- Trading book assets (100% RSF)
Lower RSF Factors (0-65%)
- Central bank reserves (0% RSF)
- Government bonds (0% RSF)
- Cash and short-term claims (0-15% RSF)
- Other assets (15-65% RSF)
NSFR vs LCR
| Aspect | LCR (Liquidity Coverage Ratio) | NSFR (Net Stable Funding Ratio) | Key Difference |
|---|---|---|---|
| Time Horizon | 30 days | 1 year | Short-term vs long-term |
| Focus | High-quality liquid assets | Stable funding structure | Assets vs liabilities |
| Stress Scenario | Acute liquidity crisis | Prolonged funding stress | Crisis duration |
| Regulatory Minimum | 100% | 100% | Same requirement |
Applications in Banking
Asset-Liability Management
- Funding structure optimization
- Deposit mix management
- Wholesale funding limits
- Capital allocation decisions
Risk Management
- Structural liquidity risk
- Funding concentration risk
- Business model sustainability
- Stress testing scenarios
Strategic Planning
- Product pricing strategies
- Customer segment focus
- Geographic expansion plans
- Competitive positioning
Regulatory Compliance
- Basel III requirements
- Reporting obligations
- Capital planning
- Supervisory oversight
Implementation Timeline
Phase 1 (2018-2020)
- 50% of required NSFR
- Observation and testing
- System development
- Data collection
Phase 2 (2021-2022)
- 75% of required NSFR
- Enhanced reporting
- Compliance testing
- Remediation planning
Full Implementation (2023+)
- 100% NSFR requirement
- Full regulatory compliance
- Ongoing monitoring
- Continuous improvement
Key Takeaways for NSFR Calculator
- The NSFR ensures banks have stable funding relative to their long-term assets over a one-year horizon
- It is calculated as (Available Stable Funding / Required Stable Funding) × 100
- The minimum regulatory requirement is 100%
- ASF includes capital and stable deposits with different availability factors
- RSF depends on the type of assets and their funding stability requirements
- NSFR complements the LCR by focusing on structural rather than short-term liquidity
- Banks must maintain NSFR above 100% at all times
- Use the calculator to assess funding stability and regulatory compliance