The Australian Prudential Regulation Authority (APRA) has reduced liquidity add-on requirements imposed on Macquarie Bank Limited in 2021 and 2022, following a supervisory assessment that found remediation of key liquidity risk management and reporting controls supports partial relief. The Net Cash Outflow (NCO) overlay in the Liquidity Coverage Ratio (LCR) calculation has been cut from 25 per cent to 15 per cent, and the 1 per cent reduction to Available Stable Funding (ASF) used in the Net Stable Funding Ratio (NSFR) calculation has been removed. APRA originally imposed the overlays after material breaches and subsequent NCO calculation errors linked to control weaknesses; the latest assessment included a Financial Accountability Regime attestation and independent assurance. The changes take effect immediately. The remaining 15 per cent NCO add-on will stay in place until APRA confirms outstanding remediation is completed and effectively embedded. APRA noted this is separate from the AUD 500m operational risk capital overlay, which remains unchanged and is subject to its own remediation activities.
Australian Prudential Regulation Authority 2026-02-05
Australian Prudential Regulation Authority partially removes Macquarie Bank liquidity add-ons after remediation progress
The Australian Prudential Regulation Authority (APRA) has reduced liquidity add-on requirements for Macquarie Bank Limited, cutting the Net Cash Outflow overlay in the Liquidity Coverage Ratio from 25% to 15% and removing the 1% reduction to Available Stable Funding in the Net Stable Funding Ratio, following a supervisory assessment. The remaining 15% NCO add-on will persist until APRA confirms full remediation, while the AUD 500 million operational risk capital overlay remains.