Okuzeka
Finance & Banking vocabulary · Regulation & Compliance

Net stable funding ratio

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, net stable funding ratio means: A Basel measure comparing available stable funding with required stable funding over a one-year horizon.

In Turkish: net istikrarlı fonlama oranı

How it is used

Abbreviated NSFR; its weighted funding categories differ from a simple loan-to-deposit comparison.

Example sentences

  1. Longer-term funding improved the bank's net stable funding ratio.

    Funding maturity can increase the amount treated as stable.

  2. The bank assessed the effect of new assets on its net stable funding ratio.

    Different assets can require different amounts of stable funding.

Common collocations

  • net stable funding ratio requirement
  • NSFR calculation
  • Basel IIIA set of international banking rules agreed by the Basel Committee after the 2008 global financial crisis. It requires more and better capital and adds liquidity and leverage limits.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.