Proposed guidance on contingent liquidity for locally-incorporated ADIs subject to LCR requirements
APRA is consulting on contingent liquidity for locally-incorporated authorised deposit-taking institutions (ADIs) subject to APS 210 Liquidity Coverage Ratio (LCR) requirements.
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:
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