What is available stable funding in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: available stable funding

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: The total amount of a bank's assets that can easily be made liquid and which are unlikely to decline in value together with certain long-term liabilities, as defined in Basel III rules.

Smart SAP Assistant

• 
  Key Concepts: 
  Available stable funding is a liquidity risk management concept used in SAP FS-LRM. It is a measure of the amount of liquidity that is available to an organization at any given time. This liquidity can be used to cover short-term cash flow needs, such as paying bills or making investments. The amount of available stable funding is determined by the organization's current assets, liabilities, and other financial commitments. 
  
  How to use it: 
  Available stable funding can be used to assess an organization's liquidity risk. It can be used to determine the amount of liquidity that is available to cover short-term cash flow needs. It can also be used to compare the liquidity of different organizations and assess their ability to meet their financial obligations. 
  
  Tips & Tricks: 
  When calculating available stable funding, it is important to consider all sources of liquidity, including cash, investments, and other assets. It is also important to consider all liabilities and other financial commitments that may affect the amount of available stable funding. 
  
  Related Information: 
  Available stable funding is closely related to other concepts in liquidity risk management, such as cash flow forecasting and stress testing. It is also related to other concepts in financial management, such as budgeting and financial planning.