Nevertheless, the full bail-in tools that includes the possibility of burning senior bank bonds and uninsured deposits will entry into force only at the end of 2018. Before that date only shareholders capital and subordinated debt can be used to resolve a bank. Insured deposits, secured borrowing (including repos and covered bonds) are exempt from bail-in.
As a result, the banks have been granted a larger CLF than would have been the case had the net cash outflow projections been more accurate  ex ante (Graph 8). In recent years, the banks have also  been holding fewer HQLA securities than the RBA judged that they could reasonably hold.