Net Stable Funding Ratio (or Requirement). The NSFR is another liquidity tool introduced as part of the Basel III framework to assess medium- and long-term liquidity by ensuring that a bank has access to long-term funding sufficient to match long-term assets. The NSFR looks at a one-year time horizon and requires that the ratio of a bank’s Available Stable Funding to its Required Stable Funding equal or exceed 100%.

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