Answer-What does the Net Stable Funding Ratio (NSFR) require?

The Net Stable Funding Ratio NSFR requires banks to maintain a minimum ratio of 100 on an ongoing basis, ensuring they fund long-term, illiquid assets lasting over one year with stable, long-term liabilities. It promotes resilience by forcing banks to reduce dependency on short-term wholesale funding and manage liquidity risks over a one-year horizon.