NSFR = Net Stable Funding Ratio

The NSFR is expressed as a ratio that must equal or exceed 100%. The ratio relates the bank's available stable funding (ASF) to its required stable funding (RSF).

A bank's total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year.

A bank's total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures. For each item, the RSF amount is determined by assigning an RSF factor to the carrying value of the exposure.