Net Stable Funding Ratio (NSFR)

AxiomSL’s liquidity ecosystem forms the base source for NSFR calculations when the rule is finalized, thus saving FIs over 60% of the implementation effort


Overview


Device Frame
NSFR Evolution

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.


Additional pressure for banks is coming from the:

  • Deliver liquidity risk and a strategic view of banks’ portfolios in the banking and trading books

  • Monitor and report on liquidity cashflow mismatches accurately on a daily basis

These factors are forcing financial institutions (FIs) to re-evaluate their approach to meeting liquidity compliance and reporting challenges.

Questions to Consider

  • Do we have confidence that our data is complete and accurate so that NSFR is a trusted value when senior executives, board directors, or regulators see them?
  • Can we apply new categories or different coefficients of Available Stable Funding and Required Stable Funding if NSFR rules change?
  • Do we have adequate internal NSFR measurement monitoring and reporting capabilities?
  • Do we have access to the data we need to calculate the NSFR promptly and accurately?

  • Do we have a single core liquidity engine to create, execute, store, view, and report the complete and transparent rules for classification and computation?
  • Do we have a platform that accommodates different NSFR rules and reporting requirements across our global jurisdictions?
  • Do we have adequate data and process controls and transparency of data from source to process to results?

Solution

Liquidity Ecosystem

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.

Powerful Modules

  • The NSFR logic module delivers net cash-flows along with NSFR rule categories that give the FI’s regulatory-required NSFR value

  • Handles both regulator-mandated and internal bank monitoring of NSFR requirements via a user-friendly, manageable business-rule engine

Capabilities

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.

Device Frame

AxiomSL’s Liquidity Risk Management Ecosystem


AxiomSL’s Liquidity Risk Management Ecosystem

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For more information about AxiomSL’s U.S. Liquidity Solution, download the PDF.

Benefits



AxiomSL - NSFR Key Benefits

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Deep Dive

U.S. Future State Solution Integrating NSFR Current Design + NSFR Module


AxiomSL's NSFR - Future State

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Reporting Template per NPR


AxiomSL's NSFR - Reporting Template

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Shared Rule Set Across LCR and NSFR per NPR


AxiomSL's NSFR - Shared Rule Set

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