7.1.2 Computation of Available Amount of Stable Funding
The available stable funding factor is a pre-determined weight ranging from 0% to 100% which is applied through business assumptions for the accounts falling under the dimensional combinations defined. The weights are as guided by the NSFR standard. The available stable funding is then taken as a total of all the weighted amounts where an ASF factor is applied.
Foreign bank branches can account for the undrawn contractual committed facilities from its head office or other branches which are the same entity and are regional hubs as ASF up to 40% of the minimum ASF required to meet the minimum requirement of NSFR.
Figure 6-1 Available Amount of Stable Funding
![Available Amount of Stable Funding Available Amount of Stable Funding](img/available-amount-stable-funding.png)
An example of the application of ASF factor is given below:
Consider an assumption defined with the following dimensional combination and ASF factors, with the based on measure being Total stable balance:
Table 6-1 An example of the application of ASF factor
Dimensional Combination | ASF Factor | ||
---|---|---|---|
Product | Retail/Wholesale Indicator | Residual Maturity Band | |
Deposits | R | <= 6 months | 95% |
Deposits | R | 6 months - 1 year | 95% |
Deposits | R | >= 1 year | 95% |
If there are five accounts falling under the above combination, then after the assumption is applied the resulting amounts with application of ASF factors is as follows:
Account | Stable Balance | ASF Weighted Amount |
---|---|---|
A1 | 3400 | 3230 |
A2 | 3873 | 3679.35 |
A3 | 9000 | 8550 |
A4 | 1000 | 950 |
A5 | 100 | 95 |
Note:
LRRCUSFR application does not compute ASF items such as Tier 1 and Tier 2 capital, deferred tax liabilities, and minority interest. The items are taken as a download from the OFS Basel application. By updating the latest Basel Run Skey as a setup parameter, the LRRCUSFR application picks up the respective standard accounting head balances and applies the respective ASF factors.- Gross Tier 2 Capital
- Deferred Tax Liability related to Other Intangible Asset
- Deferred Tax Liability related to Goodwill
- Deferred Tax Liability related to MSR
- Deferred Tax Liability related to Deferred Tax Asset
- Deferred Tax Liability related to Defined Pension Fund Asset
- Net CET1 Capital post Minority Interest Adjustment
- Net AT1 Capital post Minority Interest Adjustment
- Total Minority Interest required for NSFR