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Answer: Funding from sovereigns, public sector entities, and multilateral and national development banks
## Explanation Option C is correct because funding from sovereigns, public sector entities, and multilateral and national development banks is considered the most stable funding source under Basel III's Net Stable Funding Ratio (NSFR) framework. - **Option A is incorrect**: Funding from central banks and financial institutions is typically considered less stable than funding from sovereign entities. - **Option B is incorrect**: Non-maturity and term deposits from retail and small business customers are assigned lower stability factors in the NSFR calculation compared to sovereign funding. - **Option C is correct**: Under Basel III's NSFR, funding from sovereigns, public sector entities, and multilateral development banks receives the highest available stable funding (ASF) factor of 100%, indicating it is the most stable funding source.
Author: LeetQuiz Editorial Team
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An analyst is evaluating three different funding sources with similar residual maturities between six months and one year. Which of the following is considered to be the most stable funding source under Basel III?
A
Funding provided by central banks and financial institutions
B
Less stable non-maturity and term deposits provided by retail and small business customers
C
Funding from sovereigns, public sector entities, and multilateral and national development banks
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