The banking regulator said it would allow authorised deposit-taking institutions taking up the Reserve Bank's term funding facility to include the benefit of their "initial allowance" in the calculation of their liquidity coverage ratio, minimum liquidity holdings ratio and net stable funding ratio from 31 March.APRA said ADIs would be able to include their TFF allowance in these ratios "to the extent they have the necessary unencumbered collateral to access the facility".Under the RBA scheme, banks will have access to at least $90 billion in funding at a fixed interest rate of 0.25 per cent for three years. Interest will be due at maturity or when the use of the TFF is terminated.The RBA said the objective of the measure is to reinforce the benefits of the low cash rate by reducing the funding costs of ADIs and, in turn, help reduce the interest rates borrowers pay.The other objective is to encourage ADIs to support businesses during the COVID-19 crisis by expanding their lending base.All ADIs that extend credit are eligible to participate. They must be able to give the RBA eligible collateral. To do this they need to be members of the Reserve Bank Information and Transfer System and Austraclear. The RBA says more than 130 ADIs already satisfy these requirements.The initial allowance for each ADI will be set at 3 per cent of total credit outstanding to Australian resident households and businesses.There is also provision for an additional allowance, based on large business credit outstandings, which will be updated monthly.