A1a. Define Net Stable funding ratio (NSFR) and what is its key objective? Briefly elaborate the key components of the NSFR and its minimum threshold. Calculate NSFR of ABC bank from its balance sheet below: Treat all loans as retail loans and use the below weights for the calculation of NSFR. \begin{tabular}{|l|c|l|c|} \hline Items & Weights & Items & Weights \\ Due to banks & 100% & Cash & 0% \\ Retail deposits & 90% & Central Bank bonds & 0% \\ Wholesale deposits & 50% & Deposits with banks & 0% \\ Other liabilities & 0% & Loans and advances & 85% \\ Perpetual preference & & & \\ capital & 100% & Investment securities & 50% \\ Shareholder's equity & 100% & Other assets & 100% \\ \hline \end{tabular} (CILO 1, 3 \& 4) A1a. Define Net Stable funding ratio (NSFR) and what is its key objective? Briefly elaborate the key components of the NSFR and its minimum threshold. Calculate NSFR of ABC bank from its balance sheet below: Treat all loans as retail loans and use the below weights for the calculation of NSFR. \begin{tabular}{|l|c|l|c|} \hline Items & Weights & Items & Weights \\ Due to banks & 100% & Cash & 0% \\ Retail deposits & 90% & Central Bank bonds & 0% \\ Wholesale deposits & 50% & Deposits with banks & 0% \\ Other liabilities & 0% & Loans and advances & 85% \\ Perpetual preference & & & \\ capital & 100% & Investment securities & 50% \\ Shareholder's equity & 100% & Other assets & 100% \\ \hline \end{tabular} (CILO 1, 3 \& 4)