NSFR Calculator (Net Stable Funding Ratio)

This NSFR calculator estimates a net stable funding ratio from the inputs in the inputs: regulatory capital, stable demand deposits, less stable deposits, corporate funding, and required stable funding. It weights those funding sources, adds them into available stable funding, divides by required stable funding, and reports whether the result is above or below the 100% benchmark.

The Basel III Net Stable Funding Ratio is a structural liquidity standard. Unlike the LCR, which focuses on a 30-day stress period, the NSFR looks at funding stability over a one-year horizon. Its purpose is to reduce excessive reliance on short-term wholesale funding and encourage banks to finance longer-term assets with funding sources that are expected to remain available. The official rule includes detailed available stable funding and required stable funding categories. This calculator keeps the computation transparent by using four funding inputs and one required stable funding input.

How to use the calculator

Enter regulatory capital or other funding that receives a 100% available stable funding factor in this simplified model. Then enter stable demand deposits and less stable deposits. The calculator treats stable deposits as 95% available stable funding and less stable deposits as 90%. Enter corporate funding for wholesale or corporate funding that the model weights at 50%. Finally, enter required stable funding, the denominator produced by your regulatory schedule, asset mix model, or internal funding plan.

All funding inputs must be non-negative, and required stable funding must be greater than zero. The result will show available stable funding, required stable funding, and either a funding surplus or funding gap. Because this page does not calculate required stable funding from assets, the quality of the result depends heavily on the denominator you enter.

Calculation

The calculation uses this simplified available stable funding formula:

$\text{ASF} = \text{capital} + 0.95 \times \text{stable deposits} + 0.90 \times \text{less stable deposits} + 0.50 \times \text{corporate funding}$

The net stable funding ratio is:

$\text{NSFR} = \frac{\text{ASF}}{\text{required stable funding}} \times 100\%$

The funding surplus or gap is:

$\text{surplus or gap} = \text{ASF} - \text{required stable funding}$

If that last value is positive, the calculator labels it a funding surplus. If it is negative, the calculator shows the absolute amount as a funding gap. The page’s note also states the weights used, so the output can be checked against the inputs.

Checking a nsfr calculator (net stable funding ratio) scenario

Use the default inputs: $10,000,000 of regulatory capital, $15,000,000 of stable demand deposits, $10,000,000 of less stable deposits, $17,000,000 of corporate funding, and $35,000,000 of required stable funding.

Available stable funding is:

$\text{ASF} = \$10{,}000{,}000 + 0.95 \times \$15{,}000{,}000 + 0.90 \times \$10{,}000{,}000 + 0.50 \times \$17{,}000{,}000$

That equals:

$\text{ASF} = \$10{,}000{,}000 + \$14{,}250{,}000 + \$9{,}000{,}000 + \$8{,}500{,}000 = \$41{,}750{,}000$

The NSFR is:

$\text{NSFR} = \frac{\$41{,}750{,}000}{\$35{,}000{,}000} \times 100\% = 119.29\%$

The surplus is $41,750,000 - $35,000,000 = $6,750,000. The calculator therefore reports that the scenario meets the 100% benchmark, shows available stable funding of $41,750,000, required stable funding of $35,000,000, and a funding surplus of $6,750,000.

If corporate funding were reduced to zero with all other inputs unchanged, ASF would fall to $33,250,000. Against the same $35,000,000 requirement, NSFR would be 95.00% and the funding gap would be $1,750,000. That sensitivity illustrates why the weight assigned to each funding source matters.

Interpretation and benchmarks

An NSFR at or above 100% means available stable funding is at least as large as required stable funding under the assumptions used. A ratio below 100% means the institution would need more stable funding, a smaller required funding base, or a different balance-sheet mix to clear the threshold. In the simplified output, the surplus or gap translates the percentage into a dollar amount that treasury teams can act on.

NSFR is best read beside the LCR calculator, because short-term liquidity and structural funding can diverge. A bank may hold enough liquid assets for a 30-day stress while relying too heavily on short-term funding for longer assets. Conversely, stable long-term funding does not guarantee enough cash on hand for a sudden outflow. For nonbank liquidity screens, compare the result with the current ratio calculator, quick ratio calculator, and cash ratio calculator.

Limitations

This is not a regulatory NSFR engine. The official Basel and U.S. rules assign detailed ASF factors to liabilities and capital instruments and RSF factors to assets, derivatives, off-balance-sheet exposures, encumbered assets, maturity bands, and other categories. This calculator does not evaluate those categories. It assumes the required stable funding number has already been determined and uses only the fixed weights visible in the inputs.

It also does not measure earnings, credit quality, market value losses, deposit concentration, or contingency funding capacity. A 120% NSFR can still hide a concentrated depositor base or assets that become less liquid in stress. Use the ratio as a structural funding checkpoint, then review maturity ladders, liquidity reserves, collateral availability, and scenario-specific runoff assumptions.

Sources

• Bank for International Settlements, Basel III: The Net Stable Funding Ratio — Basel Committee standard for the one-year stable funding measure.
• Federal Register, Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements — U.S. final rule issued by the Federal Reserve, OCC, and FDIC.
• Corporate Finance Institute, Bank regulatory ratios — overview of regulatory ratios used by banks.