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22/04/2008
Darling And Flint To Meet Mortgage Lenders To Discuss Credit Crunch
Chancellor Alistair Darling and Housing Minister Caroline Flint are to meet mortgage lenders later today to discuss ways to help homeowners to survive the credit crunch.
The Bank of England has launched a scheme to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills.
Under the Scheme, banks can, for a period, swap illiquid assets of sufficiently high quality for Treasury Bills. Responsibility for losses on their loans, however, stays with the banks. By tackling decisively the overhang of assets in this way, the Scheme aims to improve the liquidity position of the banking system and increase confidence in financial markets.
Mervyn King, Governor of the Bank of England, said: "The Bank of England's Special Liquidity Scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks."
The asset-swapping scheme was criticised in some quarters as a bail-out exposing taxpayers to losses in the event of another Northern Rock-style banking collapse.
Usage of the scheme will depend on market conditions. Discussions with banks suggest that use of the scheme is initially likely to be around £50bn.
(CD/JM)
The Bank of England has launched a scheme to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills.
Under the Scheme, banks can, for a period, swap illiquid assets of sufficiently high quality for Treasury Bills. Responsibility for losses on their loans, however, stays with the banks. By tackling decisively the overhang of assets in this way, the Scheme aims to improve the liquidity position of the banking system and increase confidence in financial markets.
Mervyn King, Governor of the Bank of England, said: "The Bank of England's Special Liquidity Scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks."
The asset-swapping scheme was criticised in some quarters as a bail-out exposing taxpayers to losses in the event of another Northern Rock-style banking collapse.
Usage of the scheme will depend on market conditions. Discussions with banks suggest that use of the scheme is initially likely to be around £50bn.
(CD/JM)
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11 September 2008
BoE Outlines Plans To Special Liquidity Scheme
The Governor of the Bank of England Mervyn King has announced it is issuing a new lending scheme next week, but warned it would not provide long-term funding for banks who have raised billions in a bid to strengthen their finances since the credit crunch hit.
BoE Outlines Plans To Special Liquidity Scheme
The Governor of the Bank of England Mervyn King has announced it is issuing a new lending scheme next week, but warned it would not provide long-term funding for banks who have raised billions in a bid to strengthen their finances since the credit crunch hit.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
19 January 2009
Second Bank Bail Out Measures Announced
The Government has revealed a second package of measures to encourage banks to start lending again, and to help the sector through the financial crisis. Among the measures announced today was a scheme that would allow banks to exchange their cash or shares for a Government guarantee on their "toxic" debts.
Second Bank Bail Out Measures Announced
The Government has revealed a second package of measures to encourage banks to start lending again, and to help the sector through the financial crisis. Among the measures announced today was a scheme that would allow banks to exchange their cash or shares for a Government guarantee on their "toxic" debts.
15 October 2015
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
