Answer: Stable funding requirement

## 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.

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