The Basel Committee published the final version of the Net Stable Funding Ratio (NSFR)

Summary

In October the 31st 2014 the Basel Committee released the final version of the NSFR. The publication of this liquidity ratio is, together with the Liquidity Coverage Ratio (LCR), one of the main components of the Basel liquidity framework. Meanwhile the LCR measures the liquidity capacity of financial institutions under stressed conditions; the NSFR is a more structural ratio and tries to ensure that financial institutions maintain a stable funding profile over a one-year period. This final version presents some improvements vis-à-vis the drafts opened for public consultation in 2010 and early 2014. Above all, it maintains the structural features of the NSFR and produces a more calibrated ratio.

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