What Basel III ratio is calculated as available stable funding divided by required stable funding?

The Basel III ratio calculated as available stable funding divided by required stable funding is the net stable funding ratio.

The NSFR measures whether a bank has enough reliable, longer-term funding for the assets it holds and the activities it undertakes. Its numerator, available stable funding (ASF), includes sources such as equity and liabilities considered dependable over a one-year horizon. The denominator, required stable funding (RSF), assigns funding needs to assets and certain off-balance-sheet exposures.

Basel III created the NSFR in response to weaknesses exposed by the 2007–2008 global financial crisis, when institutions relying heavily on short-term wholesale funding proved vulnerable to liquidity runs. The Basel Committee issued the final NSFR standard on October 31, 2014, and it became a minimum standard on January 1, 2018.

The NSFR is often confused with the liquidity coverage ratio. The NSFR addresses structural funding over roughly one year, while the LCR tests whether a bank can withstand 30 days of stressed net cash outflows. A result of at least 100% is generally the regulatory target.