Newsletter May 2013: Australia takes ‘conservative’ line on Basel liquidity rules

SYDNEY – Australian regulators are taking a distinctly conservative approach to the adoption of the new Basel III liquidity rules. The main banks will not benefit from the revisions to the liquidity coverage ratio (LCR) that were announced in January by the Basel Committee, which crafted the new global standards. This decision by the Australian Prudential Regulation Authority (APRA) emerged in early May when the regulatory watchdog released its second consultation package outlining its proposed implementation of the Basel III liquidity reforms for the country’s authorised deposit-taking institutions (ADIs).