The update concerns prudential liquidity treatment of deposits held with settlement service providers, which directly relates to clearing and settlement infrastructure operations and regulatory requirements.
Low confidence — requires human review. While the guidance affects banks' liquidity management, the update is primarily about settlement infrastructure prudential treatment rather than bank account regulation itself.
Specialism
The update addresses how ADIs should classify and count deposits with settlement service providers toward minimum liquidity holding requirements, which directly concerns prudential liquidity standards for deposit-taking institutions.
Low confidence — requires human review. The guidance clarifies regulatory treatment and reporting of liquidity positions, which has a secondary regulatory reporting dimension, though the primary focus is prudential liquidity classification.
2026-06-02 11:30:45·kgurnani@vixio.com
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APRA has released a letter to Minimum Liquidity Holding authorised deposit-taking institutions on the liquidity treatment of deposits placed with settlement service providers (SSPs).
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TITLE: Australian Prudential Regulation Authority Finalises Liquidity Treatment Guidance for Settlement Service Provider Deposits
BODY:
On June 2, 2026, the Australian Prudential Regulation Authority (APRA) released a letter to Minimum Liquidity Holding authorised deposit-taking institutions (ADIs) addressing the liquidity treatment of deposits placed with settlement service providers (SSPs). The letter finalises frequently asked questions (FAQs) relating to this treatment following consultation feedback from industry participants.
The guidance clarifies how ADIs should treat deposits held with SSPs for liquidity purposes under APRA's regulatory framework. Settlement service providers play a critical role in the financial system by facilitating the transfer and settlement of payments and securities. The finalised FAQ provides authoritative direction on how these deposits should be classified and counted toward ADIs' minimum liquidity holding requirements, ensuring consistent application across the industry. This clarification is significant for ADIs managing their liquidity positions, as it removes uncertainty around the regulatory treatment of deposits with SSPs and enables more accurate liquidity reporting. The guidance applies to all ADIs subject to APRA's minimum liquidity holding requirements, including banks, mutuals, and other deposit-taking institutions. By finalising this guidance, APRA aims to promote regulatory clarity and consistency in how ADIs manage their liquidity obligations while maintaining prudential standards across Australia's financial system.
The finalised FAQ is available on APRA's website. ADIs should review the guidance to ensure their liquidity treatment of SSP deposits aligns with APRA's requirements. For further information, ADIs can contact APRA on 1300 558 849 or through its media unit at +61 2 9210 3636.
APRA finalises FAQ on liquidity treatment of deposits with settlement service providers | APRA Skip to main content Media Releases APRA finalises FAQ on liquidity treatment of deposits with settlement service providers Tuesday 2 June 2026 Print Email The Australian Prudential Regulation Authority (APRA) has released a letter to Minimum Liquidity Holding authorised deposit-taking institutions on the liquidity treatment of deposits placed with settlement service providers (SSPs). This letter responds to feedback and finalises the FAQ relating to the treatment of deposits placed with SSPs. The letter to industry is available on the APRA website at: Finalisation of FAQ on treatment of deposits placed with settlement service providers . Media enquiries Contact APRA Media Unit, on +61 2 9210 3636 All other enquiries For more information contact APRA on 1300 558 849 . The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $9.8 trillion in assets for Australian depositors, policyholders and superannuation fund members. Subscribe for updates To receive media releases, publications, speeches and other industry-related information by email Subscribe