Eligible collateral

A list of the eligible collateral for liquidity insurance schemes and the legal documentation you’ll need

Eligible collateral for liquidity insurance schemes

We lend through our market operations against collateral delivered by firms. This collateral has to be good enough so we can sell or keep it, if a counterparty fails to repay us.

For information on how to deliver securities in our market operations, please see our Collateral settlement and management page.

Collateral needed for each operation or facility

Collateral Level A Level B Level C
Operational Standing Facilities Y N N
Short-Term Repo OMOs Y N N
Indexed Long-Term Repo OMOs Y Y Y
Discount Window Facility Y Y Y
Contingent Term Repo Facility Y Y Y
Funding for Lending Scheme Y Y Y
Term Funding Scheme Y Y Y

Equities as Collateral

The Bank does not normally accept equities as collateral under the SMF but has put in place the technical measures to allow it to do so at its discretion, should the need arise. In order to deliver equities in the event that the Bank takes the decision to include them as eligible collateral in an operation, counterparties would need to have made arrangements with the Bank in advance and have opened a tri-party equity account with an eligible provider. The Bank’s eligible providers are currently BNY Mellon and Euroclear Bank SA/NV. Participants wanting more information, or to set up a tri-party account, should contact the Bank on applications@bankofengland.co.uk.

Collateral referencing LIBOR

In June 2019, the Bank of England published a discussion paper that seeks initial feedback on the Bank’s approach to the risk management of collateral referencing LIBOR for use in the Sterling Monetary Framework (SMF). The paper outlines a number of risk management approaches currently under consideration by the Bank to ensure that it remains well placed to provide liquidity insurance in support of financial stability. Views on these questions are sought, both from firms that are signed up (or expect to sign up) to the SMF and from any other interested parties.  Responses will be used to help frame the Bank’s future risk management approach with regards to collateral referencing LIBOR, which it will publish in due course after careful consideration.

Documentation and data templates for eligible collateral

(Securitisations and Raw Loans)

This page was last updated 11 October 2019
Was this page useful?
Add your details...