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Status: Closed
7 December 2022

Guidance on contingent liquidity for locally incorporated ADIs subject to MLH requirements

APRA has consulted on its proposed guidance on contingent liquidity for locally incorporated authorised deposit-taking institutions (ADIs) subject to APS 210 Minimum Liquidity Holdings (MLH) requirements.

December 2022


On 7 December 2022, following industry consultation, APRA released a letter outlining its final guidance for locally incorporated MLH ADIs to maintain contingent liquidity through self-securitised assets on an ongoing basis.

The letter, final APG 210 and non-confidential submission can be found below: 



Contingent liquidity: Final guidance

Prudential Practice Guide


Prudential Practice Guide APG 210

Non-confidential submission


September 2022


On 15 September 2022, APRA released a consultation letter on contingent liquidity for locally incorporated ADIs subject to APS 210 MLH requirements. 

Given the improvement in conditions, APRA proposes to return the level of contingent liquidity MLH ADIs are expected to hold to at least 10% of an ADI’s total deposits and short-term wholesale liabilities, on the expectation that these ADIs will be able to increase holdings on a timely basis if needed as stress conditions emerge.

Written submissions on the proposal should be sent by 29 September 2022.

The letter to industry can be found below. 



Letter to all locally incorporated ADIs subject to the MLH requirements: Contingent liquidity: proposed guidance

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.

Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.