Net Stable Funding Ratio (NSFR)

The Net Stable Funding Ratio (NSFR) is a key liquidity standard introduced under the Basel III framework that requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities over a one-year horizon. Specifically, the NSFR mandates that the amount of available stable funding (ASF) must exceed the amount of required stable funding (RSF), ensuring the ratio is greater than or equal to 100% on an ongoing basis.