Liquidity Treatment of Deposits with Settlement Service Providers
Summary
APRA released a letter to Minimum Liquidity Holdings (MLH) authorized deposit-taking institutions (ADIs) clarifying the liquidity treatment of deposits placed with settlement service providers (SSPs). The letter includes a draft FAQ and invites stakeholder feedback on the guidance. This consultation affects ADIs subject to MLH requirements in Australia.
What changed
APRA has issued guidance to MLH ADIs clarifying how deposits placed with settlement service providers should be treated for liquidity purposes. The document takes the form of a letter containing a draft FAQ that addresses specific questions about the applicable liquidity treatment. This guidance applies to authorized deposit-taking institutions subject to Minimum Liquidity Holdings requirements.
Affected ADIs should review the draft FAQ and submit feedback to APRA by the specified deadline. While this is clarification rather than new obligations, institutions should ensure their current practices align with the guidance once finalized. Compliance teams should track this consultation and prepare to update internal policies if needed.
What to do next
- Review the draft FAQ on liquidity treatment of SSP deposits
- Submit stakeholder feedback to APRA within the comment period
- Assess current practices against the clarified guidance
Archived snapshot
Apr 2, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
APRA releases letter on liquidity treatment of deposits placed with settlement service providers
Thursday 2 April 2026
Print Email The Australian Prudential Regulation Authority (APRA) has released a letter to Minimum Liquidity Holdings (MLH) authorised deposit-taking institutions (ADIs) on the liquidity treatment of deposits placed with settlement service providers (SSPs).
The letter seeks to clarify the treatment of deposits placed with SSPs.
APRA invites stakeholder feedback on the draft FAQ. The letter to industry is available on the APRA website at: Liquidity treatment of deposits placed with settlement service providers
Media enquiries
Contact APRA Media Unit, on +61 2 9210 3636
All other enquiries
For more information contact APRA on 1300 558 849.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $9.8 trillion in assets for Australian depositors, policyholders and superannuation fund members.
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