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.
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
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.