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Net Stable Funding Ratio Calculator

Written by:
PK

On this page is a bank NSFR calculator or net stable funding ratio calculator. Enter a bank's available stable assets and required stable assets to see how the two compare.

NSFR Calculator

What is the net stable funding ratio?

The net stable funding ratio (or NSFR, or NSF ratio) is a bank liquidity ratio which compares stable funding (liabilities) a bank could draw versus potential funding a bank would need, such as deposits (assets). The ratio, along with the liquidity coverage ratio, came out of Basel III after the Great Financial Crisis of 2008-2009, where some banks found their presumed reliable funding sources dry up.

Individual countries have to determine exactly what makes up the two pools of funding. In the United States, read the FDIC, Federal Deposit Insurance Corporation's, final rules here.

Net Stable Funding Ratio Formula

The net stable funding ratio formula is:

Net\ Stable\ Funding\ Ratio=\frac{Available\ Stable\ Funding}{Required\ Stable\ Funding}

Where:

  • Available Stable Funding – Total liabilities which can be quickly sourced and won't quickly disappear, such as deposits and longer-term wholesale funding.
  • Required Stable Funding – Total assets, committments, and derivative exposures modified by their liquidity requirements.

For exact rules, check with the regulators in charge of a bank per country. In the United States, find the FDIC's guidelines in the Federal Register here [PDF].

Other Banking Ratio and Valuation Calculators

Now that you've tried the loan to deposit ratio calculator, try these other DQYDJ tools to value banks:

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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