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| ''Bank regulation - funding risk''.
| | == Summary == |
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| (NSFR).
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| A longer-term funding measure under Basel III regulations.
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| The NSFR requires longer-term and less liquid bank assets to be funded by longer-term, more stable liabilities, assuming a stressed scenario.
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| Although subject to domestic definitions and detailed calculations and weightings, the broad objective is to ensure that a bank is not financing loans and other credit transactions with unstable short term funding, as occurred pre-2008 when many banks were funding long term loans with short term interbank funding.
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| The NSFR is defined as the ratio of Available Stable Funding (ASF) to Required Stable Funding (RSF):
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| NSFR = ASF / RSF
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| A ratio of 100% or greater means that the bank has enough stable funding available, to meet its requirements under this measure.
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| The ratio is intended to ensure a bank remains liquid for up to one year during a crisis.
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| == See also == | |
| * [[Available Stable Funding]]
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| * [[Basel III]]
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| * [[Funding]]
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| * [[Funding ratio]]
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| * [[Funding risk]]
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| * [[Leverage Ratio]]
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| * [[Liquidity]]
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| * [[Liquidity Coverage Ratio]]
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| * [[Loan to deposit ratio]]
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| * [[Required Stable Funding]]
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| * [[Stress]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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Latest revision as of 09:29, 27 July 2023
Summary
Importing files from local file repository
