7.1.3 Computation of Required Amount of Stable Funding

The required 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 defined dimensional combinations. The weights are as guided by the NSFR standard. The required stable funding is then considered as a sum of all the weighted amounts where an RSF factor is applied.

The required stable funding factor is a weight function and is applied in a similar manner as that of the ASF. The formula which is used for calculating the Required Amount of Stable Funding is as follows:

Figure 6-2 Required stable funding factor