Explanation

Option A is correct because the Net Stable Funding Ratio (NSFR), also known as the stable funding requirement, is designed to ensure that banks maintain sufficient stable funding over a 1-year horizon.

• Option A is correct: The NSFR requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities over a 1-year time horizon.
• Option B is incorrect: Minimum capital requirements (such as CET1, Tier 1, and Total Capital ratios) address solvency risk, not liquidity risk over a 1-year horizon.
• Option C is incorrect: The minimum liquidity requirement typically refers to the Liquidity Coverage Ratio (LCR), which addresses short-term liquidity needs over a 30-day stress period, not a 1-year horizon.