" class="no-js "lang="en-US"> Bank of England launches Contingent Term Repo Facility - Fintech Finance
Saturday, April 13, 2024

Bank of England launches Contingent Term Repo Facility

In response to financial market conditions the Bank of England is today activating the Contingent Term Repo Facility (CTRF) – a temporary enhancement to its sterling liquidity insurance facilities.

This step is designed to help alleviate frictions observed in money markets in recent weeks, both globally and domestically, as a result of the economic shock caused by the outbreak of Covid-19. The CTRF is a flexible liquidity insurance tool that allows participants to borrow central bank reserves (cash) in exchange for other, less liquid assets (collateral).

The Bank’s liquidity insurance facilities support financial market functioning by providing market participants with predictable and reliable sources of liquidity. The Bank’s liquidity insurance facilities support financial stability by reducing the cost of disruption to critical financial services.

Holding additional CTRF operations over the next two weeks complements the Bank’s existing liquidity facilities. The CTRF will run alongside the Bank’s regular sterling market operations – the Indexed Long-Term Repo (CTRF) and Discount Window Facility (DWF). The Bank is also able to lend in all major currencies through its participation in the central bank swapline network.

The CTRF will lend reserves for a period of three months. This will also allow participants to use the CTRF as a way to bridge beyond the point at which drawings can be made from the Term Funding Scheme with additional incentives for SMEs (TFSME) – helping to support lending to the real economy as quickly as possible.

An accompanying Market Notice provides additional detail and the terms of this operation.

  1. BNY Mellon Collaborates with Accenture to Drive Accelerated Growth for Clients Read more
  2. XS.com Awarded the “Best Multi-Asset Broker – LATAM” at UF Awards in Mexico Read more
  3. Insurtech bolt Appoints CFO, Matt More, SaaS Technology Veteran Read more
  4. Navy Federal Credit Union Announces 7-Year Strategic Partnership With Backbase Read more
  5. aelf Leads the Fusion of AI and Blockchain to Shape the Future of Technology Read more