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Home > Markets and Payments > Operational Standing Facilities

Operational Standing Facilities

The Operational Standing Facilities (OSFs) have two roles. The first is to provide an arbitrage mechanism in normal market conditions to prevent money market rates moving far away from Bank Rate. So they are a vital part of implementing the Bank's monetary policy. The second role is to provide a means for SMF participants to manage unexpected (frictional) payment shocks which may arise due to technical problems in their own systems or in the market-wide payments and settlement infrastructure.

The Bank seeks to satisfy itself that use of the facility is consistent with these purposes. The rates currently paid/charged on the facilities are shown below:

Operational Standing Lending Facility
Operational Standing Deposit Facility



The operational standing deposit facility is uncollateralised. The operational standing lending facility is for overnight collateralised lending against Level A Collateral.

The operational standing facilities are available all day subject to operational constraints arising from deadlines in payments and securities settlement systems. The operation of Operational Standing Facilities is set out in more detail in the Red Book:

Red Book - Operational Standing Facilities

A quick reference guide for the Operational Standing Facilites is available at the link below:

 OSF Quick Reference Guide

Market Notices

The main SMF Documentation sets out how these operations work. Its provisions may be amended by the Bank from time to time by Market Notices.

Market Notice: Sterling Monetary Framework
Effective 6 August 2009