The NSFR provides an incentive for banks to shift to sources of funding considered to be more stable and away from sources such as short-term wholesale liabilities.
Second, responding to banks’ greater preference for assuring the fulfilment of their liquidity needs on a longer-term basis, the ECB increased the share of refinancing provided via three-month longer-term refinancing operations and reduced the share provided via the one-week main refinancing operations. Again, the total amount of outstanding refinancing remained unchanged; however, the average maturity was extended.