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Home > News and Publications > Assistance to HBOS since 2008

Assistance to HBOS since 2008

Subject/Request Details: Assistance to HBOS since 2008

Date Released: 30 August 2011
Disclosure: The information/sources below were provided in answer to:
‘What direct or indirect assistance has been given to HBOS since 2008 by the Bank of England’
In a statement provided by the Bank to the Treasury Committee on 24 November 2009 we explained that Emergency Liquidity Assistance (‘ELA’) was extended by the Bank to RBS and HBOS in the autumn of 2008, and provided information about the facilities including the amount of collateral accepted by the Bank of England. The statement can be viewed below.
In response to questions from Peter Bone MP and Dai Davies MP, the Financial Services Secretary to the Treasury noted that “The rate charged to the two banks was a penal rate, broadly equivalent to a cost of funds around 2 per cent. above the equivalent market funding rate.” - House of Commons Hansard (8 December) Columns 253W-254W, [PQ 302697] and [PQ 302987].
Unlike other public authorities, Parts I to V of the FoI Act (including the general right of access under section 1) do not apply to information held by the Bank for the purposes ‘of its functions with respect to... financial operations intended to support financial institutions for the purposes of maintaining stability’.