ApplicationApplication

Application

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

2. A reference to an ADI in this Prudential Standard is a reference to:

   1. an ADI on a Level 1 basis; and
   2. a group of which an ADI is a member on a Level 2 basis.

3. If an ADI to which this Prudential Standard applies is:

4. the holding company for a group of bodies corporate, the ADI must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable; or

5. a subsidiary of an authorised non-operating holding company (authorised NOHC), the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable.

6. If an ADI, or a member of its Level 2 group, is the originating ADI in a securitisation and meets the operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120), the ADI may exclude the assets and liabilities of the relevant special purpose vehicles (SPVs) from the calculation of its minimum liquidity holdings (MLH) and net stable funding ratio (NSFR), as applicable. For the purposes of calculating its liquidity coverage ratio (LCR), an ADI must include the cash flows from the assets and liabilities of SPVs related to the ADI’s securitisation activities in the ADI’s reported amounts.

7. This Prudential Standard commences on 1 July 2025.