LM-12.3 LM-12.3 Requirements and Calculation Methodology
LM-12.3.1
The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. This ratio must be equal to at least 100 percent on an ongoing basis. 'Available stable funding' is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to 1 year. 'Required stable funding' is defined as the portion of assets and OBS exposures expected to be funded on an ongoing basis over a 1-year horizon. The amount of such stable funding required of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution, as well as those of its OBS exposures.
August 2018LM-12.3.2
The NSFR (as a percentage) must be calculated as follows:
Available stable funding >=100 Required stable funding August 2018LM-12.3.3
The NSFR definitions mirror those outlined in the section LM-11 'Liquidity Coverage Ratio unless otherwise specified.
August 2018
