The temptation for foreign banks to harvest central bank liquidity from their Australian branches is an issue that has emerged from the findings of a research exercise into the operation of the committed liquidity facility, which were released yesterday by Australian Prudential Regulation Authority.The extent of projected demand for the CLF from foreign bank branches was not disclosed by APRA.But the cranky tone of the regulator was clear: "It is not evident why a foreign bank branch needed a CLF to ensure its ability to repay obligations to its own parent or sister branch," APRA wrote.The regulator said it would require foreign banks to assume cash outflows to related parties are zero when applying for the committed liquidity facility.They must also assume projected cash inflows from related parties are no greater than 50 per cent.