Christopher Kent: The committed liquidity facility

Address by Mr Christopher Kent, Assistant Governor (Financial Markets) of the Reserve Bank of Australia, to Bloomberg, Sydney, 23 July 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
29 July 2019
by Christopher Kent
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  |  11 pages

I'd like to thank Bloomberg for the opportunity to speak to you about the committed liquidity facility (CLF). The CLF has been in place now for almost five years.

As we announced in June, after a careful review, the RBA will be adjusting the settings of the CLF starting from next year. Today, I thought it would be helpful to discuss the developments that have led us to make these adjustments. We have also published a detailed article on this on the RBA's website. But first, let's review why we needed the CLF in the first place.

Why Do We Need a CLF?

The global financial crisis highlighted how important it is for banks to manage their liquidity risk.