Banking (prudential standard) determination No. 13 of 2022 (Cth)

Banking (prudential standard) determination No. 13 of 2022

Prudential Standard APS 210 Liquidity

Banking Act 1959 I, Renée Roberts, a delegate of APRA:

(a) under subsection 11AF(3) of the Banking Act 1959 (the Act) REVOKE Banking (prudential standard) determination No. 1 of 2017, including Prudential Standard APS 210 Liquidity made under that determination; and

(b) under subsection 11AF(1) of the Act DETERMINE Prudential Standard APS 210 Liquidity, in the form set out in the schedule, which applies to all ADIs and authorised NOHCs to the extent provided in paragraphs 2 to 5 of the prudential standard.

This instrument commences on 1 January 2023.

Dated: 1 December 2022

[Signed]

Renée Roberts Executive Director Policy and Advice Division Interpretation In this instrument:

APRA means the Australian Prudential Regulation Authority.

ADI and authorised NOHC have their respective meanings given in section 5 of the Act.

Schedule

Prudential Standard APS 210 Liquidity comprises the document commencing on the following page.

Prudential Standard APS 210

Liquidity

Objectives and key requirements of this Prudential Standard

This Prudential Standard requires an authorised deposit-taking institution to adopt prudent practices in managing its liquidity risks and to maintain an adequate level of liquidity to meet its obligations as they fall due across a wide range of operating circumstances.

The key requirements of this Prudential Standard are that an authorised deposit-taking institution must:

 have a risk management framework to measure, monitor and manage liquidity risk that is commensurate with the nature, scale and complexity of the institution;

 maintain a portfolio of liquid assets sufficient in size and quality to enable the institution to withstand a severe liquidity stress; and