Available stable funding is the sum of capital, deposits, and market funding, each counted at a factor based on its stability. Required stable funding is the sum of assets, each counted at a factor based on its liquidity1.

Consider a hypothetical example in which available stable funding is 110 trillion yen and required stable funding is 100 trillion yen. The NSFR is 110%. If required stable funding rises to 125 trillion yen, it falls to 88%, below 100%. In Japan, it has applied to banks under the international standard since the period ending September 2021. It does not apply to domestic-standard banks.

Notes

  1. Financial Services Agency, "バーゼル規制の概要" (Overview of the Basel framework, our translation) (August 2026), page 8, "安定調達比率（NSFR）" (Net stable funding ratio (NSFR)) and page 17 (not applied to domestic-standard banks) (in Japanese). ↩