The Australian Prudential Regulation Authority (APRA) has today released a note for authorised deposit-taking institutions (ADIs) providing further detail on its approach to the implementation of the Basel III liquidity framework and, in particular, on the operation of the committed liquidity facility (CLF). This includes applicable principles and the determination of the facility size and access. The need for the facility was recognised by APRA and the Reserve Bank of Australia (RBA) as arising from the relatively short supply of Australian dollar HQLA. ADIs will nonetheless be required to demonstrate that they have taken ‘all reasonable steps’ towards meeting their liquidity coverage ratio requirements through their own balance sheet management, before relying on the CLF.