19 September 2012 7:11am

Banks may care to get a wriggle on and develop a more diverse funding profile ahead of the introduction of stiffer regulations on liquidity in 2015, Guy Debelle, assistant governor of the Reserve Bank of Australia, told a Finsia lunch in Adelaide yesterday.

Banks need to develop liability products that conform to the 30-day liquidity stress scenario, Debelle said.

He also predicted that banks would cut the interest rates they offered on at-call deposits before too long.

"The incentive for ADIs to issue short-term debt to other financial institutions will be considerably...