Basel III’s Net Stable Funding Ratio (NSFR) is increasingly being adopted in major countries as a new liquidity regulatory compliance and reporting requirement and is now in effect in many smaller countries.
These factors are forcing financial institutions (FIs) to re-evaluate their approach to meeting liquidity compliance and reporting challenges.
AxiomSL’s liquidity ecosystem that runs on AxiomSL’s single data integrity and control platform, ControllerView®, empowers FIs to use their trusted liquidity data to calculate the NSFR accurately and on a timely basis.
NSFR is fundamentally different than FR 2052a/LCR in that it requires carrying value of assets, liabilities, and equity and is not based on cash flows. That said, AxiomSL’s FR 2052a solution will form the base source for NSFR calculations when the rule is finalized, saving FIs over 60% of the implementation effort because of the cross-reference matches from FR 2052a to NSFR.