  In this paper we investigate the relationship between Funding Value
Adjustment (FVA) and Net Stable Funding Ratio (NSFR). FVA is defined in a
consistent way with NSFR such that the new framework of FVA monitors the costs
due to keeping NSFR at an acceptable level, as well.
  In addition, the problem of choosing the optimal funding strategy is
formulated as a shortest path problem where the proposed FVA framework is
applied in the optimization process. The solution provides us with the optimal
funding decisions that lead to the minimum funding cost of the transaction. We
also provide numerical experiments for FVA calculation and optimization
problem.
