Document ID: chunk:federal_register_of_legislation:F2022L01620:reg:100:p2
Version: federal_register_of_legislation:F2022L01620
Segment Type: reg
Provision Reference: reg 100 (pt 2/12)
Character Range: 68887–71847

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 must meet all of the following criteria:

       (a)          the committed funding facility is an irrevocable commitment from the branch's head office and is appropriately documented;  and

       (b)          the committed funding facility is quantified.

    This paragraph does not apply to a foreign ADI that is part of a group that also has a locally-incorporated banking subsidiary in Australia.

    59.         A foreign ADI may meet up to 50 per cent of its LCR requirement with a head office committed funding facility. The remaining liquidity requirement must be met with eligible liquid assets as detailed in this Attachment.

Inflows by counterparty

    60.         All inflows are to be taken only at the latest possible date, based on the contractual rights available to counterparties. Inflows from loans that have no specific maturity are not included, with the exception of minimum payments of principal, fee or interest associated with an open maturity loan.

    Retail and SME inflows

    61.         An ADI is assumed to receive all fully performing contractual inflows from retail and SME[7] customers. At the same time, however, an ADI is assumed to continue to extend loans to retail and SME customers, at a rate of 50 per cent of contractual inflows. This results in a net inflow rate of 50 per cent of the contractual amount.

    Other wholesale inflows

    62.         An ADI is assumed to receive all fully performing contractual wholesale cash inflows. In addition, an ADI is assumed to continue to extend loans to wholesale clients, at a rate of zero per cent of inflows for financial institutions and central banks, and 50 per cent for all others, including non-financial corporates, sovereigns, PSEs and MDBs. This will result in an inflow rate of:

       (a)          100 per cent from financial institution and central bank counterparties; and

       (b)          50 per cent for other entities.

    Inflows from maturing securities not included in the stock of HQLA receive an inflow rate of 100 per cent.

    Operational deposits

    63.         A zero per cent inflow rate applies to deposits held at other financial institutions for operational purposes.

    64.         Likewise, the depositing ADI must not count any inflow for deposits held at the centralised institution in a cooperative banking network, which are assumed to stay at the centralised institution. These funds will receive a zero per cent inflow rate.

Other cash inflows

    Derivatives cash inflows[8]

    65.         These derivative items receive an inflow rate of 100 per cent.

    Other contractual cash inflows

    66.         Other contractual cash inflows receive an inflow rate