Regulatory Alerts2024-01-01
Net Stable Funding Ratio Guidelines 2024
The Registrar of Financial Institutions at the Reserve Bank of Malawi has issued these guidelines to implement the Net Stable Funding Ratio (NSFR) framework for all banking institutions. The regulations mandate that banks maintain an NSFR of at least 100 percent on an ongoing basis, requiring them to fund long-term activities with sufficiently stable capital and liabilities. The document establishes standardized calculation methodologies for Available Stable Funding and Required Stable Funding, assigning specific weighting factors based on asset liquidity, liability maturity, counterparty risk, and encumbrance status to ensure long-term funding stability and mitigate systemic liquidity risk.
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