An LCR ADI must maintain an adequate level of unencumbered high-quality liquid assets (HQLA) to meet its liquidity needs for a 30 calendar day period under a severe stress scenario, in accordance with Attachment A. Absent a situation of financial stress (refer to paragraph 5 of Attachment A):
for a locally incorporated ADI, the value of each of the Australian dollar (AUD) LCR and all currencies LCR must not be less than 100 per cent; and
for a foreign ADI, the value of the LCR must not be less than 40 per cent on an all currencies basis.
APRA may require an LCR ADI to maintain a higher minimum LCR if APRA has concerns about the ADI’s liquidity risk profile or the quality of its liquidity risk management.