Australia Trials Bank Liquidity Regime Ahead of 2015 Rollout
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Australia’s banking watchdog said it is testing procedures for implementing a new liquidity regime ahead of its official rollout in 2015.
Lenders have been asked to submit a proforma application to access the central bank’s funding facility to cover their expected shortfall of liquid assets in 2014, the Australian Prudential Regulatory Authority said in a statement on its website. The trial will help determine steps taken by banks to reduce their liquidity risk.