AI Summary of Article 428c Calculation of the net stable funding ratio
This regulation mandates that institutions assess their assets, liabilities, and off-balance-sheet items on a gross basis, unless otherwise stated. It outlines that, for the calculation of the net stable funding ratio, applicable stable funding factors must be applied to the accounting values of these items.
Furthermore, the regulation emphasises that double counting of required stable funding and available stable funding is prohibited. When an item can belong to multiple required stable funding categories, it must be classified in the category that necessitates the highest contractual required stable funding.
Article 428c Calculation of the net stable funding ratio
1. Unless otherwise specified in this Title, institutions shall take into account assets, liabilities and off-balance- sheet items on a gross basis.
2. For the purpose of calculating their net stable funding ratio, institutions shall apply the appropriate stable funding factors set out in Chapters 3 and 4 to the accounting value of their assets, liabilities and off-balance-sheet items, unless otherwise specified in this Title.
3. Institutions shall not double count required stable funding and available stable funding.
Unless otherwise specified in this Title, where an item can be allocated to more than one required stable funding category, it shall be allocated to the required stable funding category that produces the greatest contractual required stable funding for that item.