Banks will not be able to treat deposits from self-managed superannuation funds as "stable" under the latest version of the prudential rules on managing liquidity risk.APRA's latest guidance states that "where a natural person places funds with an intermediary that then places those funds with an ADI, the deposit with the ADI is considered to be a deposit from a financial institution, unless four conditions are met, the chief of which is "the natural person exercises these rights in practice and cannot transfer these rights to the intermediary."Some banks had proposed that self-managed super fund deposits be classified as stable deposits on the grounds that "the trustee overseeing the SMSF deposit account is not necessarily a financially sophisticated individual."APRA said it would stick with the view expressed in its November 2011 discussion paper, namely that it "considers SMSF depositors to be self-selected, financially sophisticated individuals, which is an indicator of a greater propensity to withdraw funds in a stress situation.""As such, SMSF deposits are appropriately categorised as less stable."Under the liquidity coverage ratio, retail deposit balances are classified as either "stable" or "less stable". By contrast, some small business deposits will be considered retail, and more stable, for LCR purposesStable deposit balances, APR said, "are those that are considered to have the lowest propensity to be withdrawn during times of stress."Stable balances are modelled as having a low cash outflow rate of five per cent. Less stable deposits are considered to have a higher propensity to be withdrawn and, as a result, depending on deposit characteristics, receive a 10 per cent or higher cash outflow rate. APRA said it would adopt the Basel III treatment of stable deposits and introduce two higher run-off categories for less stable deposits, with run-off rates of 10 per cent and 30 per cent, respectively.Consistent with earlier guidance, APRA said "certain types of deposits are considered more likely to be withdrawn in a time of stress."These include:-- High-value deposits (such as deposits above the government deposit guarantee limit of A$250,000).-- Deposits from customers who do not have other established relationships with an authorised deposit-taking institution that make the deposit withdrawal unlikely.-- Deposits where the internet is integral to the design, marketing and usage of the account, and deposits with promotional interest rates.Term deposits will continue to be treated favourably where there is a withdrawal notice period of greater than 30 days.