7 Core Funding Ratio Calculation

Core Funding Ratio (CFR) is one of the two minimum standards developed to promote funding and liquidity management in financial institutions. CFR assesses the bank’s liquidity risks over a longer time horizon. Both standards complement each other, are aimed at providing a holistic picture of a bank’s funding risk profile, and aid in better liquidity risk management practices. All 2 A institutions are required to calculate CFR.