Asset Purchase Facility transactions are undertaken by a subsidiary company of the Bank of England, the Bank of England Asset Purchase Facility Fund Limited (BEAPFF). The BEAPFF borrows from the Bank to pay for the purchases it makes. It is this lending to the BEAPFF that appears on the Bank's balance sheet as an asset.

On the Bank's balance sheet the liability corresponding to this asset was initially a deposit from the government's Debt Management Office. This deposit appeared under 'Other liabilities' on the Bank Return.

Since the move to Quantitative Easing, the Bank financed its lending to BEAPFF by the creation of central bank reserves. On the Bank Return this is reflected in an increase in the level of Reserves Balances.

The chart below shows the amount of the Bank's lending to the BEAPFF at weekly intervals and which APF facility has been the driver.

Further information:

• APF Operational Results
• The Bank Return