APRA consults on contingent liquidity for MLH ADIs

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.