Featured Product

    APRA Updates FAQs on Liquidity Risk Management Standards and Guidance

    August 09, 2019

    APRA updated the frequently asked questions (FAQs) on the management of liquidity risk by the authorized deposit-taking institutions. The questions provide further information to assist regulated entities in the interpretation of the prudential standard (APS 210), prudential practice guide (APG 210), and the reporting standard (ARS 210.0) on liquidity risk management. These FAQs are published for information purposes only and their content does not constitute legal advice.

    The prudential standard APS 210 sets out the APRA requirements for authorized deposit-taking institutions in relation to the management and measurement of liquidity risk. ARS 210 is the reporting standard that sets out requirements for the provision of information to APRA related to the liquidity and funding of an authorized deposit-taking institution; it includes reporting forms and associated instructions and should be read in conjunction with the prudential standard APS 210. APS 210 and ARS 210 apply from January 01, 2018. APG 210, however, is a prudential practice guide that is intended to assist the authorized deposit-taking institutions in complying with the specified requirements and to outline prudent practices in relation to the management and measurement of liquidity risk. The key requirements of APS 210 are that an authorized deposit-taking institution must:

    • Have a risk management framework to measure, monitor, and manage liquidity risk that is commensurate with the nature, scale, and complexity of the institution
    • Maintain a portfolio of liquid assets sufficient in size and quality to enable the institution to withstand a severe liquidity stress
    • Maintain a robust funding structure appropriate for its size, business mix, and complexity

     

    Related Links

    Keywords: Asia Pacific, Banking, APS 210, APS 210, ARS 210, FAQ, Liquidity Risk, Reporting, APRA

    Featured Experts
    Related Articles
    News

    APRA Updates Lists of Validation and Derivation Rules in December 2019

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    December 13, 2019 WebPage Regulatory News
    News

    APRA Finalizes Prudential Standard for Credit Risk Management of Banks

    APRA updated the prudential standard on credit risk management requirements (APS 220) for authorized deposit-taking institutions, post a public consultation.

    December 12, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Guidelines on ICT Security and Governance

    EIOPA issued a consultation on guidelines on the Information and Communication Technology (ICT) security and governance by insurers.

    December 12, 2019 WebPage Regulatory News
    News

    BCBS Consults on Design of Prudential Treatment for Crypto-Assets

    BCBS published a discussion paper on the design of prudential treatment for crypto-asset exposures of banks.

    December 12, 2019 WebPage Regulatory News
    News

    NCUA Approves Delay of Risk-Based Capital Rules Until January 2022

    The NCUA Board held its eleventh open meeting of 2019 and approved a final rule to delay the effective date of the risk-based capital rules for credit unions to January 01, 2022.

    December 12, 2019 WebPage Regulatory News
    News

    APRA Issues Operational Risk Rules, Consults on Reporting Requirements

    APRA published an updated prudential standard APS 115 that sets out operational risk requirements for authorized deposit-taking institutions in Australia.

    December 11, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on European Benchmarks Regulation in December 2019

    ESMA updated the question and answers (Q&A) document on the European Benchmarks Regulation.

    December 11, 2019 WebPage Regulatory News
    News

    APRA Decides to Keep Countercyclical Capital Buffer for Banks at 0%

    APRA announced its decision to keep the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions on hold at zero percent.

    December 11, 2019 WebPage Regulatory News
    News

    ESMA on Draft Amendments to Indices and Recognized Exchanges Under CRR

    ESMA issued the final report on draft amendments to the Implementing Regulation (EU) 2016/1646, which specifies the main indices and recognized exchanges, under the Capital Requirements Regulation (CRR), that are relevant to credit institutions and investment firms subject to prudential requirements and trading venues.

    December 11, 2019 WebPage Regulatory News
    News

    FED Extends Consultation Period for Capital Requirements for Insurers

    FED is extending comment period for the proposed rule establishing risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities.

    December 10, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4316