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APRA releases proposed Net Stable Funding Ratio for banks

( April 4, 2016, 02:40 GMT | Official Statement) -- MLex Summary: The Australian Prudential Regulation Authority has released for consultation a discussion paper outlining its proposed implementation of the Net Stable Funding Ratio for banks, which would come into effect from Jan. 1, 2018. The rules are designed to reduce the reliance of banks on less-stable sources of funding such as short-term wholesale funding, and will apply to 15 larger, more complex banks, including ANZ, Bank of China, Citigroup, Commonwealth Bank of Australia, HSB, ING, Macquarie Bank, National Australia Bank, Rabobank Australia, and Westpac Banking Corporation. The paper also proposes options for a liquid assets requirement for foreign bank branches in Australia. The regulator's full statement follows: ...

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