APRA proposals could radically cut ADIs' liquid asset options

A discussion paper issued by the Australian Prudential Regulation Authority (APRA) on September 11 could lead to the universe of securities considered liquid assets for banks' prudential purposes being slashed. Market sources tell KangaNews this could mean authorised deposit taking institutions (ADIs) will not be able to hold bonds from the semi-government or supranational, sovereign and agency (SSA) sectors in their liquidity books.