Alongside the capital standards based on the Basel III framework, prudential requirements for the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) have been established for the banking sector.

 

The purpose of the liquidity coverage ratio is for the microbank to hold liquid assets sufficient to cover total net cash outflows during financial stress. For this, the microbank must maintain an adequate liquidity reserve that allows it to cope with the expected difference between the inflow and outflow of liquid funds under 30-day stress conditions.

 

The purpose of the Net Stable Funding Ratio is to ensure the stability of funding attracted by the banking sector. According to the requirement of this prudential coefficient, the structure of the microbank's liabilities must be adequate for its on-balance and off-balance-sheet activities.