Net stable funding ratio (NSFR)

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).

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