The RBA readies its bank bailout mechanism

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From Banking Day:

The Australian Prudential Regulation Authority has released details of Committed Liquidity Facility arrangements between authorised deposit-taking institutions and the Reserve Bank, which form part of the new liquidity coverage ratio regime.

APRA has estimated that the 13 ADIs covered by the LCR rule would suffer a cash outflow of more than A$400 billion under stressed conditions.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.