Overview
APS 210 Liquidity establishes requirements for Australian ADIs to ensure the stability of funding and management of liquidity risks. Institutions must develop a risk management framework proportionate to their complexity, maintain a sufficient portfolio of liquid assets, and adopt robust funding structures. Key provisions include applying liquidity rules to Level 1 and Level 2 entities within corporate groups and offering operational requirements for securitization where applicable. The standard allows exclusions for certain assets and liabilities in regulatory measures while mandating inclusion of cash flows for securitized assets and liabilities during liquidity coverage calculations. This standard reinforces APRA’s Financial Resilience Pillar within its prudential framework.