Document ID: chunk:federal_register_of_legislation:F2022L01620:reg:100:p1
Version: federal_register_of_legislation:F2022L01620
Segment Type: reg
Provision Reference: reg 100 (pt 1/12)
Character Range: 64942–69131

100                                                                                                              Other contractual cash outflows

Cash inflows

    54.         When considering its available cash inflows, an ADI must only include contractual inflows from outstanding exposures that are fully performing and for which it has no reason to expect a default within the 30‑day time horizon. Where APRA is of the view that an ADI is overly reliant on cash inflows from one or a limited number of wholesale counterparties, APRA may set an alternative limit on the level of cash inflows that may be included in the LCR in consultation with the ADI.

Secured lending, including reverse repos and securities borrowing

    55.         An ADI must assume that maturing reverse repurchase or securities borrowing agreements secured by HQLA1 will be rolled over and will not give rise to any cash inflows (zero per cent). Maturing reverse repurchase or securities borrowing agreements secured by other HQLA are to be modelled as cash inflows, as outlined in Table 4 below, due to the reduction of funds extended against the collateral. Collateralised loans extended to customers for the purpose of taking leveraged trading positions are to be modelled with a 50 per cent cash inflow from contractual inflows made against non-HQLA1 or non-HQLA2.

    56.         As an exception to paragraph 55 of this Attachment, if the collateral obtained through reverse repo, securities borrowing or collateral swaps, which matures within the 30-day horizon, is re-used (i.e. rehypothecated) and is tied up for 30 days or longer to cover short positions, an ADI must assume that such reverse repo or securities borrowing arrangements will be rolled over and will not give rise to any cash inflows (zero per cent), reflecting its need to continue to cover the short position or to re-purchase the relevant securities.

    Table 4 – Maturing secured lending inflow rates

 Maturing secured lending backed by the following asset category                                                      Inflow rate                                             Inflow rate
                                                                                                                      (%)                                                     (%)
                                                                                                                       (if collateral is not used to cover short positions)    (if collateral is used to cover short positions)
 HQLA1                                                                                                               0                                                       0
 CLF-eligible debt securities, where the ADI receiving assets has a CLF with the RBA subject to the ADI's CLF limit  0                                                       0
 HQLA2A                                                                                                              15                                                      0
 HQLA2B (eligible  residential mortgage-backed securities)                                                           25                                                      0
 Other HQLA2B                                                                                                        50                                                      0
 Margin lending backed by securities that are not HQLA1,  HQLA2 or CLF-eligible securities                           50                                                      0
 All other collateral                                                                                                100                                                     0

Lines of credit

    57.         Lines of credit, liquidity facilities and other contingent funding facilities that an ADI holds at other institutions for its own purposes receive a zero per cent inflow rate.

    58.         APRA may allow recognition of access to head office funds via a committed funding facility if the ADI is a foreign ADI. In such instances, the head office committed funding facility