meta_id 3203477

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.