FRM Glossary · Part II · Liquidity

Net Stable Funding Ratio (NSFR)

Available stable funding divided by required stable funding over a 1-year horizon — must be ≥ 100%.

In more detail

NSFR pairs each asset with a required stable funding factor and each liability with an available stable funding factor. Long-dated wholesale funding and stable retail deposits are weighted highly. NSFR complements the short-horizon LCR to address structural funding mismatches.