A bank funding plan is a document, usually covering one to three years, that sets out how a bank expects to finance its lending and other assets. It projects the growth of the balance sheet and shows how much funding will come from customer deposits, how much from wholesale funding such as bonds, covered bonds and securitisation, and how much from central bank facilities, broken down by maturity and currency. It also schedules the refinancing of debt that falls due, using the bank's maturity profile.
The plan is prepared by the treasury as part of balance sheet management and approved by the asset and liability committee and the board. It is tested against liquidity requirements such as the net stable funding ratio (NSFR) and against assumptions about the retail deposit mix. European supervisors collect funding plans from larger banks each year. It describes normal conditions; stress is covered by the contingency funding plan.