The Australian Prudential Regulation Authority has reviewed the range of assets that qualify for the liquidity coverage ratio and decided to leave existing arrangements largely in place.Under the LCR rule, which took effect last year, authorised deposit-taking institutions must maintain an adequate level of high quality liquid assets that can be converted into cash to meet liquidity needs for 30 days.An issue for Australian banks has been that the stock of high quality liquid assets (government bonds) is not sufficient to meet their needs.To make up the shortfall the Reserve Bank has established a Committed Liquidity Facility, allowing authorised deposit-taking institutions to enter into repurchase agreements of eligible securities outside the RBA's normal market operations.Securities eligible for use in the RBA's Committed Liquidity Facility include asset-backed securities, bank bills and certificates of deposit, and foreign and supranational credit issues.Banks have lobbied APRA to widen its definition of high quality liquid assets, without success.The only assets qualifying as level one assets are cash, balances held with the Reserve Bank of Australia and Australian government and semi-government securities.APRA had previously determined that no assets qualified as level two assets, which can make up as much as 40 per cent of HQLA in some jurisdictions. That decision stands.One change is that debt securities of the Export Finance and Insurance Corporation, which are guaranteed by the Commonwealth, qualify as LCR assets.