Guidance on contingent liquidity for locally-incorporated ADIs subject to LCR requirements
APRA has consulted on its proposed guidance on contingent liquidity for locally-incorporated authorised deposit-taking institutions (ADIs) subject to APS 210 Liquidity Coverage Ratio (LCR) requirements.
On 18 November 2021, following industry consultation, APRA released a letter outlining its final guidance for locally-incorporated LCR ADIs to maintain contingent liquidity through self-securitised assets on an ongoing basis.
The letter and non-confidential submission can be found below:
Release of consultation letter on contingent liquidity to locally-incorporated ADIs subject to LCR requirements
On 14 July 2021, APRA released a letter to consult on contingent liquidity for locally-incorporated ADIs subject to APS 210 LCR requirements.
Based on APRA’s analysis and experience of the liquidity impacts through the early stages of COVID-19, APRA considers that it would be prudent for an ADI to maintain surplus self-securitised assets amounting to at least 30 per cent of its LCR Net Cash Outflows.
The letter to industry can be found below:
Note on submissions
It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.