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Finance Calc Kit
Business

NSFR Calculator

Calculate the Net Stable Funding Ratio (NSFR) to assess a bank long-term funding stability under Basel III regulations.

Stable Funding Inputs

$
$

Net Stable Funding Ratio (NSFR)

119.29%

Meets Basel III minimum 100% requirement

Available Stable Funding

$41,750,000.00

Weighted stable funding sources

Required Stable Funding

$35,000,000.00

Weighted funding needs

Stable Funding Surplus

+$6,750,000.00

Compliance Status

Compliant

Minimum NSFR: 100%

ASF Cushion Above RSF

Total ASF$41.8M
  • Required Stable Funding$35,000,000.0083.8%
  • Funding Surplus$6,750,000.0016.2%

Regulatory benchmark: Basel III Net Stable Funding Ratio standard (minimum 100%, fully effective since January 1, 2018).

Report tool

What the Net Stable Funding Ratio measures

The Net Stable Funding Ratio (NSFR) is a Basel III liquidity standard that compares a bank's available stable funding to its required stable funding over a one-year horizon. Regulators use it to ensure institutions fund long-term assets with durable liabilities rather than short-term wholesale borrowing. Banks must maintain an NSFR of at least 100%, fully effective since January 1, 2018.

NSFR complements the 30-day stress test captured by the liquidity coverage ratio calculator. Where LCR focuses on surviving a short liquidity shock, NSFR evaluates whether funding structures remain stable across a full year.

NSFR formula

After weighting each funding source and asset by regulatory factors, the ratio is:

NSFR=(Available Stable Funding (ASF)Required Stable Funding (RSF))×100%\mathrm{NSFR} = \left(\frac{\text{Available Stable Funding (ASF)}}{\text{Required Stable Funding (RSF)}}\right) \times 100\%

A result at or above 100% means available stable funding covers required stable funding. Below that threshold signals a structural funding mismatch regulators may require the bank to correct.

Worked example

Suppose a bank reports $41,750,000 in available stable funding and $35,000,000 in required stable funding. Dividing ASF by RSF and multiplying by 100 gives an NSFR of 119.29%, which exceeds the100% minimum and indicates a funding surplus of $6,750,000.

Frequently asked questions

What is the minimum NSFR under Basel III?
Basel III requires banks to maintain an NSFR of at least 100%. U.S. banking agencies aligned with this standard, with full implementation effective January 1, 2018.
How is NSFR different from LCR?
LCR measures 30-day liquidity under stress using high-quality liquid assets against net cash outflows. NSFR measures one-year structural funding stability by comparing weighted available funding to weighted required funding.
What counts as Available Stable Funding?
ASF includes regulatory capital, stable retail deposits, long-term wholesale funding, and other liabilities assigned high stability factors under Basel III. Each item is multiplied by an assigned factor before summing.
What counts as Required Stable Funding?
RSF reflects assets and off-balance-sheet exposures that need stable funding, such as loans, securities, and commitments. Each exposure carries a required stable funding factor based on maturity and liquidity.
Can I use this calculator for official regulatory filings?
This tool accepts total ASF and RSF inputs for quick ratio checks. Official NSFR reporting requires detailed regulatory weightings from your jurisdiction. Use published supervisory guidance for filing purposes.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.