As a result of that discussion, APRA will allow banks to reach an agreement with the RBA for a CLF for a specified amount, subject to RBA approval, to enable them to meet the balance of their liquidity requirement under the LCR. APRA may ask banks to specify the size of their access to the CLF as much as 12 months in advance.
Recourse to certain instruments widely used in the past, such as the support provided by deposit guarantee funds, has been called into question by the recent European Commission stance on state aid; this field is often marked by uncertainties, which may hinder the rapid action indispensable in crisis management.