The liquidity coverage ratio which was first introduced by the Basel Committee on Banking Supervision in
December 2009 requires banks to hold a stock of unencumbered high quality liquid assets to meet 30 days
cash outflows under an acute stress scenario. Meanwhile, the net stable funding ratio (NSFR) measures the
amount of longer-term, stable sources of funding employed by a bank relative to the liquidity profiles of the
assets and the potential for contingent calls on funding liquidity arising from off-balance sheet commitments
and obligations