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APRA consults on contingent liquidity for MLH ADIs

Thursday 15 September 2022

The Australian Prudential Regulation Authority (APRA) has released for consultation its proposed updates to the guidance on contingent liquidity for locally-incorporated authorised deposit-taking institutions (ADIs) subject to minimum liquidity holdings (MLH) requirements in Prudential Standard APS 210 Liquidity (APS 210). 

In today’s letter, APRA proposes to reduce the level of contingent liquidity that MLH ADIs are expected to hold, on the expectation that these ADIs will be able to increase holdings on a timely basis if needed as stress conditions emerge.
 
Submissions on the consultation should be sent to APRA by 29 September 2022. 

The consultation letter to industry is available on the APRA website at: Guidance on contingent liquidity for locally-incorporated ADIs subject to MLH requirements.

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Contact APRA Media Unit, on +61 2 9210 3636

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For more information contact APRA on 1300 558 849.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.