What is required stable funding factor in SAP FS-BA-AN-STA - Strategy Analyzer?

SAP Term: required stable funding factor

• Component: FS-BA-AN-STA

• Component Name: Strategy Analyzer

• Description: Parameter assigned to various types of assets and intended to approximate the amount of a particular asset that could not be monetisedthrough sale or use as collateral in a secured borrowing on an extended basis during a liquidity event lasting one year. Under this standard such amounts are expected to be supported by stable funding.

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• Key Concepts: 
  Required stable funding factor is a concept used in the SAP FS-BA-AN-STA Strategy Analyzer. It is a measure of the amount of stable funding that is required to support a given strategy. Stable funding is defined as funds that are not subject to market fluctuations and can be used to support the strategy over time. 
  
  How to use it: 
  The required stable funding factor is used to determine the amount of stable funding that is needed to support a given strategy. This factor can be calculated by taking into account the expected return on investment, the risk associated with the strategy, and the expected volatility of the market. The higher the required stable funding factor, the more stable funding is needed to support the strategy. 
  
  Tips & Tricks: 
  When calculating the required stable funding factor, it is important to consider all factors that could affect the stability of the strategy. This includes factors such as market volatility, economic conditions, and other external factors. Additionally, it is important to consider how long the strategy will be in place and how much risk is associated with it. 
  
  Related Information: 
  The required stable funding factor is an important concept for understanding how much stable funding is needed to support a given strategy. It can be used in conjunction with other metrics such as expected return on investment and risk associated with the strategy to determine how much stable funding is needed. Additionally, it can be used to compare different strategies and determine which one requires less stable funding.