Basel 3 Liquidity - Net Stable Funding Ratio
Overview
Basel III was the first accord to deal with
liquidity explicitly. This was largely due to the
financial crisis of 2008 that was caused (to some extent) by a shortfall of bank liquidity.
Net Stable Funding Ratio
{% NSFR = \frac{Available \; Stable \; Funding}{Total \; Net \; Cash \; Outflows} %}
