Loan to stable funding ratio
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Bank prudential management
(L/SF ratio).
A refined measure of a bank's funding profile, the L/SF ratio is a refinement of the loan to stable deposit (L/SD) ratio.
The L/SF ratio divides the bank's loans by its total stable funding.
Stable funding includes:
- Stable deposits;
- Longer term debt in issue; and
- Capital.
A further refinement of the L/SF ratio is the regulatory Net stable funding ratio (NSFR).
