Basel III: Net Stable Funding Ratio (NSFR)

The Net Stable Funding Ratio (NSFR) seeks to improve the resilience of the banking sector over the longer term by providing incentives to develop more stable forms of funding. We explain how the Net Stable Funding Ratio (NSFR) is calculated and the difference between available stable funding (numerator) and required stable funding (denominator). We also describe the implementation issues and timeline associated with this ratio.