APRA Prudential Standard APS 210 Liquidity

This Prudential Standard applies to all authorised deposit-taking institutions (ADIs) under the Banking Act. It commences on 1 January 2018.

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
• maintain a robust funding structure appropriate for its size, business mix and complexity.