NSFR
Business & Finance abbreviation · Banking
| Stands for | Net stable funding ratio |
|---|---|
| Categories | Business & Finance |
NSFR stands for Net stable funding ratio, a banking abbreviation.
Basel III requirement that a bank's available stable funding, such as capital and long-term deposits, be at least equal to its required stable funding over a one-year horizon. It discourages banks from financing long-term assets with short-term wholesale borrowing.
Example: Replacing overnight repo funding with five-year bonds improved the bank's NSFR to 118 percent.
Usage notes
The NSFR complements the 30-day liquidity coverage ratio. US regulators finalized their NSFR rule for large banking organizations in 2020, effective in 2021. Its weightings assume retail deposits are stickier than funding from other financial institutions.
Related abbreviations
More banking abbreviations
- NEFT – National Electronic Funds Transfer
- NII – Net interest income
- NIM – Net interest margin
- NPA – Non-performing asset
- NPL – Non-performing loan
- NSF – Non-sufficient funds
- OD – Overdraft
- ODP – Overdraft protection
- PAN – Primary account number
- PEP – Politically exposed person
- PIN – Personal identification number
- PSD2 – Second Payment Services Directive