The Special Liquidity Scheme (SLS) was introduced in April 2008 to improve the liquidity position of the banking system by allowing banks and building societies to swap their high quality mortgage-backed and other securities for UK Treasury Bills for up to three years. The Scheme was designed to finance part of the overhang of illiquid assets on banks' balance sheets by exchanging them temporarily for more easily tradable assets.
Although the drawdown period for the SLS closed on 30 January 2009, the scheme remained in place for a further three years. The SLS officially closed on 30 January 2012. All drawings under the Scheme were repaid before the Scheme closed. For more information on use of the Scheme, see the Market Notice dated 3 February 2009 .