On 9 January 2023, Australian Prudential Regulation Authority (APRA) published a letter, informing that the Committed Liquidity Facility (CLF) was fully phased-out.
Indeed, since January 2015, those incorporated authorised deposit-taking institutions (ADIs) to which APRA applies the Basel III liquidity standards, have been required to hold high-quality liquid assets (HQLA) sufficient to withstand a 30-day period of stress under the liquidity coverage ratio (LCR) requirement.
Based on the Reserve Bank of Australia (RBA) projections of exchange settlement (ES) balances and APRA’s projections of LCR requirements, APRA and the RBA consider there to be sufficient HQLA for locally incorporated ADIs to meet LCR requirements now and for some time without the need to utilise the Committed Liquidity Facility (CLF). The final reduction of the CLF has occurred as scheduled, and therefore as at 1 January 2023, the aggregate CLF has been fully phased-out to zero.
Other Features
banks
Basel III
financial stability
liquid assets
liquidity
settlement
standard
supervisory practices
Date Published: 2023-01-09
Date Taking Effect: 2023-01-09
Regulatory Framework: Basel III Standards
Regulatory Type: information
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