From 1 January 2015, the minimum liquidity holdings (MLH) to be held by ADIs will be tied to their ability to pass a 30-day stress test, and their preparedness for an APRA liquidity audit.
This will impact most ADIs that currently calculate their liquidity as 9 percent of liabilities and usually provide liquidity information to APRA in an ad hoc manner.
- Most ADIs will need to change several aspects of their pricing, risk and reporting systems.
- APRA has provided clarity on run-off factors for funding.
- Clarity provided on the transitional timeline implementation and recognition of additional high quality liquid assets.