Post–implementation Review extension – Australian Prudential Regulation Authority (APRA)
The Basel III liquidity reforms were introduced in 2014, with the commencement of the revised Prudential Standard APS 210 Liquidity (APS 210). Two core measures of the reforms, the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), became effective from 2015 and from 2018, respectively.
Given the significance of these reforms, APRA was required to undertake a post‑implementation review (PIR), focusing on the core measures of the LCR and NSFR.
In April 2019, the Office of Best Practice Regulation (OBPR) agreed to APRA’s request to amalgamate the two into one single PIR process, with a revised due date of December 2021.
In November 2021, APRA sought an extension citing the widespread and unprecedented impacts of COVID-19 which led to the suspension of planned policy initiatives and subsequent flow on impacts for the timing of the planned PIRs. Consequently, OBPR agreed to the extension for the PIR to 30 June 2022.
On 3 March 2022, APRA released for consultation a discussion paper to authorised deposit‑taking institutions (ADIs) and other interested stakeholders advising of APRA’s PIR on the Basel III liquidity reforms.