CTHIn ForceLegislation
Banking (prudential standard) determination No. 3 of 2025
Key principlesKey principles
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Key principles
- An ADI is responsible for the sound management of its liquidity risk and must have a robust framework to manage its liquidity risk accordingly.
- An ADI must at all times maintain sufficient liquidity to meet its obligations as they fall due and hold a minimum level of liquid assets to survive a severe liquidity stress.
- An ADI must ensure that its activities are funded with stable sources of funding on an ongoing basis.
- An ADI must inform APRA as soon as possible of any concerns it has about its current or future liquidity position, and its plans to address those concerns. In particular, if an ADI experiences a severe liquidity stress, it must notify APRA immediately and advise the action that is being taken to address the situation.