• Service: Audit, Regulatory Audit, Advisory, Risk Consulting, Topics, Managing Risk & Complexity, Risk Systems for Financial Services, Financial Services Regulation
  • Industry: Financial Services
  • Type: Regulatory update
  • Date: 16/11/2011

APRA releases discussion paper and draft prudential standard on liquidity 

The new governance requirements will apply to all ADIs in Australia and form part of APRA's revised prudential standard APS 210 Liquidity. These requirements include that the board of each ADI articulate its tolerance for liquidity risk (including identifying various stress scenarios and the ADI's policy framework for survival).

Key insights

The proposed changes and their timing include:

  • new governance and framework requirements
  • the 30 day Liquidity Coverage Ratio (LCR) to address an acute stress scenario and be met continuously as from January 2015
  • the 12 months Net Stable Funding Ratio (NSFR) from January 2018
  • a 15 months going concern scenario to address forecast funding needs.
  • less complex ADIs will not be subject to the LCR & NSFR requirements.


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