This chapter describes the scope of application for the NSFR calculation and defines the main terms.

Version effective as of 15 Dec 2019

First version in the format of the consolidated framework.

Definitions

10.1 The net stable funding ratio (NSFR) consists primarily of internationally agreed- upon definitions and calibrations. Some elements, however, remain subject to national discretion to reflect jurisdiction-specific conditions. In these cases, national discretion should be explicit and clearly outlined in the regulations of each jurisdiction.

10.2 Unless otherwise specified, the NSFR definitions mirror those in the liquidity coverage ratio (LCR) standard, set out in LCR, and the liquidity monitoring metrics, set out in SRP50. All references to LCR definitions in the NSFR refer to the definitions in the LCR standard published by the Basel Committee. Supervisors who have chosen to implement a more stringent definition in their domestic LCR rules than those set out in the Basel Committee LCR standard have discretion over whether to apply this stricter definition for the purposes of implementing the NSFR requirements in their jurisdiction.