# Net stable funding ratio (NSFR)

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- Post ID: 588343
- Modified: 2023-07-25T21:13:31+00:00
- Language: en

## Definition

A ratio prescribed by the supervisory authorities as of the beginning of 2018 in the course of Basel III that relates cash outflows and cash inflows at an institution over a period of one year in advance. Its ultimate purpose is to prevent disproportionate short-term refinancing of long-term assets; in other words, to force institutions to maintain a healthy matching of maturities. - See banking rule, golden, capital, funding rule, golden, financial strength, liquidation, core capital, leverage ratio, liquidity maturity balance sheet, liquidity coverage ratio, liquidity ratio, liquidity management, liquidity risk, regulatory pressure. - Cf. Deutsche Bundesbank Monthly Report of September 2010, p. 8 f. (introduction date of the medium-term funding ratio), BaFin Annual Report 2013, p. 21 f. (adjustment measures by the Basel Committee). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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