Funding for Lending and other market operations

We are responsible for a number of market schemes and operations outside of the Sterling Monetary Framework.

Funding for Lending Scheme

The Funding for Lending Scheme is designed to encourage banks and building societies to lend more to households and businesses. It does this by providing funding to these firms for an extended period, with the quantity of funding we provide linked to their lending performance.

The FLS allows firms taking part to borrow UK Treasury Bills in exchange for eligible collateral. It was launched by the Bank and the Treasury in 2012. Firms can borrow from the scheme until January 2018. 

Funding for Lending Scheme usage and lending data

We publish quarterly data showing, for each group participating in the extension to the FLS, the amount borrowed from us and the net quarterly flows of lending, broken down by sector.

FLS Group Aggregate outstanding FLS drawings as at 30/09/18 (£mn)
Total of which net FLS Extension drawings
TOTAL 16,924 16,924
Aldermore 0 0
Arbuthnot Latham 0 0
Bank of Cyprus 152 152
Bath Investment & Building Society 0 0
Cambridge & Counties Bank 108 108
Cambridge Building Society 0 0
Charter Court Financial Services 0 0
Close Brothers 0 0
Coventry Building Society 0 0
Cumberland Building Society 70 70
FirstRand Bank 15 15
Furness Building Society 0 0
Hinckley & Rugby Building Society 0 0
Investec Bank 50 50
Julian Hodge Bank 27 27
Kleinwort Benson 0 0
Leeds Building Society 0 0
Leek United Building Society 0 0
Lloyds Banking Group 13,100 13,100
Mansfield Building Society 4 4
Market Harborough Building Society 26 26
Metro Bank 0 0
Monmouthshire Building Society 0 0
Nationwide Building Society 0 0
Newbury Building Society 0 0
Nottingham Building Society 193 193
OakNorth Bank 0 0
OneSavings Bank 0 0
Paragon Bank 109 109
Progressive Building Society 0 0
RBS Group 0 0
Saffron Building Society 25 25
Sainsbury's Bank 0 0
Santander 1,875 1,875
Secure Trust Bank 0 0
Shawbrook Bank 0 0
Skipton Building Society 0 0
Teachers Building Society 0 0
Tesco Bank 0 0
United Trust Bank 35 35
Virgin Money 0 0
Wesleyan Bank 35 35
Yorkshire Building Society 1,100 1,100

More detailed Funding for Lending Scheme data and the data for the previous quarter are also available.

Note that data may not sum to the total due to rounding. Data may be subject to revisions. With the exception of any new groups that join the scheme, participants do not report data on lending beyond end-2015. Hence the lending data (and associated borrowing allowance data) will only change as a result of revisions to previous data, or to reflect new participants that have joined the scheme. 

US dollar repo operations

The Bank of England, the Bank of Canada, the European Central Bank, the Federal Reserve, the Bank of Japan and the Swiss National Bank have a network of bilateral swap lines. These allow liquidity to be provided in each jurisdiction in any of the five currencies foreign to that jurisdiction, if the two central banks in a particular bilateral swap arrangement judge that market conditions warrant such action in one of their currencies.

This arrangement will be in place until further notice. 

US dollar repo news

The Bank of England also has a reciprocal currency agreement (swap line) with the Federal Reserve. Through this arrangement, the Federal Reserve provides us with US dollar funding to facilitate these operations. We currently offer to lend US dollar funds via fixed-rate tenders with full allotment at a term of seven days.

Our US dollar repo operations are subject to the terms of the Sterling Monetary Framework documentation, as supplemented and amended by the supplementary terms for US dollar repo operations, and the US dollar repo Market Notice

Schedule of US dollar repo operations

We keep the frequency and maturity of our US dollar operations under review in light of market conditions. The following table contains a schedule of the latest operations:

Operation date

Term

Settlement date

Maturity date

07 November 2018

7 days

08 November 2018

15 November 2018

14 November 2018

8 days  15 November 2018 23 November 2018

21 November 2018

6 days

23 November 2018

29 November 2018

28 November 2018

7 days

29 November 2018 

06 December 2018

05 December 2018

7 days

06 December 2018

13 December 2018

12 December 2018

7 days

13 December 2018

20 December 2018

19 December 2018

15 days

20 December 2018

04 January 2019

03 January 2019

6 days

04 January 2019

10 January 2019

09 January 2019

7 days

10 January 2019

17 January 2019 

16 January 2019

7 days

17 January 2019

24 January 2019

23 January 2019

7 days

24 January 2019

31 January 2019

30 January 2019

7 days

31 January 2019

07 February 2019

Results of US dollar repo operations

Time series data on the results of the US dollar repo operations is available.

Shari’ah-compliant liquidity facilities

As part of our strategy to broaden access to our facilities, we have decided to establish a Shari’ah-compliant deposit facility to enable Islamic banks to use our liquidity facilities. The technical detail on how we intend to implement this is set out in a series of consultation papers on Shari’ah-compliant liquidity facilities. 

Shari’ah compliant liquidity facilities: establishing a fund based deposit facility

We also carried out a consultation in 2016:

Establishing Shari’ah compliant central bank liquidity facilities

On 28 September 2018, Dave Ramsden, Deputy Governor, Markets and Banking, announced that the Bank will shortly be establishing a new subsidiary of the Bank, to house the Shari’ah Compliant Facility; this will be a special purpose vehicle, called the Bank of England Alternative Liquidity Facility (BEALF). This will also be the first non-interest based liquidity facility to be offered by a major Western central bank, providing important structural support to the UK’s Islamic finance sector.

PDFThe establishment of the Bank of England Alternative Liquidity Facility (BEALF)

This page was last updated 05 November 2018
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