· The Australian Prudential Regulatory
Authority (Apra) remains at the forefront of Basel III
· Its recently released consultation paper
responds to the Basel Committee on Banking
Supervision’s (BCBS) January guidance for meeting
the Liquidity Coverage Ratio (LCR), although Apra takes a more
· Apra will recognise so-called HQLA1 assets
but does not recognise any products suitable for HQLA2 or
HQLA2B. However, it will monitor liquidity in eligible
· Apra’s proposals on net
capital outflows during stress periods will require foreign
banks to hold more capital in Australia.
Although the Basel Committee on Banking Supervision (BCBS)
issued new guidance for meeting the Liquidity Coverage Ratio
(LCR) in January 2013, the Australian Prudential Regulatory
Authority (Apra) has adopted a more conservative approach.
Apra released its discussion paper, titled Implementing
Basel III liquidity reforms in Australia, earlier this month.
The paper outlined the introduction of the 30-day LCR...