Local operational capacityLocal operational capacity

Local operational capacity

1. A foreign ADI must perform an assessment of its local operational capacity (LOC) to liquidate assets and make or receive payments without assistance from staff located outside Australia, at least annually, and provide the results of the assessment to APRA upon request.
2. A foreign ADI, in performing a LOC assessment, must ensure at a minimum, it considers a scenario involving a combination of time zones, different public holidays and an offshore operational risk event under which the foreign ADI would operate, including making and receiving payments, for a minimum of three business days without assistance from staff located outside Australia. For this purpose, the foreign ADI may assume that related-party operations within Australia continue to function normally.
3. APRA may impose additional requirements on a foreign ADI if the LOC assessment highlights issues concerning the ability of the foreign ADI to liquidate assets and make or receive payments without assistance from staff located outside Australia.

Exceptional Liquidity Assistance

1. An ADI under severe liquidity stress may request Exceptional Liquidity Assistance (ELA) from the Reserve Bank of Australia (RBA). Prior to approaching the RBA, the ADI must notify APRA immediately of the ADI’s liquidity concerns and its intention to request ELA. An ADI must provide any information requested by APRA or the RBA in relation to the ADI’s ELA request. An ADI must have the operational capability to provide information along with its application for ELA or within other timeframes specified by APRA.