National Australia Bank has already provided balance sheet funding of around $6 billion to conduits - mostly ones sponsored by the bank - to replace funding now largely unavailable from investors in the commercial paper market thanks to the disruption in credit markets the bank said yesterday.The bank said this funding may escalate to around $11 billion by the end of the bank's financial year at the end of this month. The impact of funding conduit assets is forecast to reduce core capital by approximately 15 basis points, the bank said.Michael Ullmer, finance director of NAB provided an outline of the bank's funding strategies and capital position to a conference organized by investment bank UBS yesterday.Ullmer noted that NAB had sold $21 billion in term funding in the eleven months to August, of which $14 billion was sold in the first half. Some of the second half funding included a securitisation by Clydesdale Bank in July. He said the bank's average weighted maturity of term debt was 2.4 years and said the bank had sold term debt over the last six weeks.He said the bank had sold $2.1 billion in "lower tier two" capital, or quasi equity, during the June quarter.