The update concerns APRA's clarification on liquidity treatment for deposits held by authorized deposit-taking institutions (ADIs), which are licensed banks managing deposit liquidity under prudential regulation.
Low confidence — REQUIRES HUMAN REVIEW. This is purely a prudential liquidity guidance for deposit-taking banks; no investment services, asset management, or growth-oriented financial services are involved.
Specialism
The update directly addresses how deposits with settlement service providers should be treated under APRA's liquidity requirements framework, which is core to Liquidity Coverage Ratio (LCR) and liquid asset buffer obligations.
Mandatory inheritance: Liquidity is a child of Prudential Standards, so Prudential Standards must be raised as the secondary tag.
2026-04-08 09:41:47·reprocess@vixio.com
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APRA has released a letter to Minimum Liquidity Holding (MLH) authorised deposit-taking institutions (ADIs) on the liquidity treatment of deposits placed with settlement service providers (SSPs).
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TITLE: Australian Prudential Regulation Authority Clarifies Liquidity Treatment of Settlement Service Provider Deposits
BODY:
On Thursday, April 2, 2026, the Australian Prudential Regulation Authority (APRA) released a letter to Minimum Liquidity Holdings (MLH) authorised deposit-taking institutions (ADIs) addressing the liquidity treatment of deposits placed with settlement service providers (SSPs).
The letter seeks to clarify how deposits placed with SSPs should be treated for liquidity purposes under APRA's regulatory framework. This guidance is significant for ADIs managing their liquidity positions and ensuring compliance with APRA's liquidity requirements. The clarification addresses a technical area of prudential regulation that affects how ADIs calculate and maintain their minimum liquidity holdings.
APRA has invited stakeholder feedback on a draft frequently asked questions (FAQ) document accompanying the letter. ADIs and other interested parties should review the letter and FAQ, available on the APRA website, and provide any comments or feedback to APRA. The feedback period allows industry participants to raise questions or concerns regarding the liquidity treatment guidance before any final position is established. Stakeholders seeking further information can contact APRA on 1300 558 849 or the APRA Media Unit on +61 2 9210 3636.
REFERENCES:
Australian Prudential Regulation Authority. (2 April 2026). APRA releases letter on liquidity treatment of deposits placed with settlement service providers. Retrieved from https://www.apra.gov.au/