The additional eligible collateral available to the Australian system as a result of the most recent changes can support over $ billion of additional liquidity (after allowing for haircuts), if needed. The Australian Government has announced a general guarantee of deposits, as a precaution to allay any public anxiety over security of their savings.
Today, micro- and macroprudential supervision complement each other by building on their respective knowledge of the banking system to provide a sound and credible assessment of banks’ resilience to stress. For instance, during the preparatory phase, supervisors and regulators discuss in detail the stress test methodology and the calibration of the adverse scenario.