1. User Guide
  2. Business Assumptions
  3. Business Assumptions Supported
  4. Value Change
  5. Required Stable Funding Factor

8.2.4.3 Required Stable Funding Factor

Required stable funding factors are the multiplication factors specified for assets for the purpose of calculating the NSFR. This assumption allows you to specify the amount in percentage only. The percentage specified is applied to the selected combination in order to calculate the Net Stable Funding Ratio (NSFR).

Refer section Defining a New Business Assumption, for information on the steps involved in specifying this assumption. In the following example RSF factor is applied on EOP balances for a selected list of products and the resulting RSF amounts are calculated.

Table 7-35 Value Change - Required Stable Funding Factor

Business Assumption Computation
Product RSF Factor EOP Balance Required Stable Funding
Non-renewable loans to financial entities and financial corporates 0% 200000 0 [= (200000*0%)]
Gold 50% 150000 75000 [= (150000*50%)]
Corporate bonds rated A+ to A- 40% 220000 0 [= (220000*40%)]