Eased LCR requirements for offshore branch ADIs could be coming

KangaNews understands the Australian Prudential Regulation Authority could be close to changing the liquid-assets requirements for authorised deposit-taking institutions (ADIs) which are branches of offshore banks. Market sources say there are two key measures under consideration: one would likely reduce the volume of liquid assets these banks are required to hold, the other could clear the way for greater allocation to securities which do not qualify as high-quality liquid assets (HQLAs).