FRM Part II · FRM Exam Part II · Monitoring Liquidity
Under the Basel III NSFR framework, which of the following funding sources receives the highest available stable funding (ASF) factor?
Liabilities and capital instruments with effective maturity of one year or more receive the highest ASF factor, 100%. Stable retail deposits receive 95%, short-term non-financial corporate funding 50%, and short-term financial institution funding 0%.
- AWholesale funding from a financial institution with residual maturity of three months
- BUnsecured funding from non-financial corporates with residual maturity of four months
- CStable retail deposits with residual maturity under one year
- DLiabilities and capital instruments with effective residual maturity of one year or moreCorrect
Explanation
Capital and liabilities with residual maturity of one year or more receive a 100% ASF factor. Stable retail deposits get 95%, corporate funding under six months gets 50%, and short-term financial institution funding gets 0%.
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