Following a review, the Reserve Bank has........>

RBA: Following a review, the Reserve Bank has assessed that Authorised

Deposit-taking Institutions (ADIs) using the Committed Liquidity Facility (CLF)

can increase their holdings of high quality liquid assets (HQLA) from 25 to 30

per cent of the stock of HQLA securities. This change is possible because the

volume of HQLA securities has risen over recent years. To minimise the effect on

market functioning, the increase will occur at a pace of 1 percentage point per

year until 2024, commencing with an increase to 26 per cent in 2020.

- The Reserve Bank has also assessed that the CLF fee should be increased from

15 to 20 basis points per annum on the size of the commitment to each ADI. The

fee is set so ADIs face similar financial incentives to meet their liquidity

requirements through the CLF or by holding HQLA. To minimise the effect on

market functioning, the increase will occur in two steps, with the CLF fee

rising to 17 basis points on 1 January 2020 and to 20 basis points on 1 January

2021.

- The Reserve Bank will provide further information about these adjustments in a

speech to be scheduled in July.