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.

Provisional publication dates for 2018

  • 2 August 2018
  • 1 November 2018
FLS Group Aggregate outstanding FLS drawings as at 31/03/18 (£mn)
Total of which net FLS Extension drawings
TOTAL 26,372 26,372
Aldermore 0 0
Arbuthnot Latham 0 0
Bank of Cyprus 152 152
Bath Investment & Building Society 0 0
Cambridge & Counties Bank 110 110
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 28 28
Furness Building Society 0 0
Hinckley & Rugby Building Society 0 0
Investec Bank 50 50
Julian Hodge Bank 37 37
Kleinwort Benson 0 0
Leeds Building Society 0 0
Leek United Building Society 0 0
Lloyds Banking Group 21,100 21,100
Mansfield Building Society 10 10
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 210 210
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 3,175 3,175
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 1,200 1,200
Other participants3 0

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. 

Apply to take part in the Funding for Lending Scheme

The Funding for Lending Scheme is open to firms that take part in the Sterling Monetary Framework and are signed up to our Discount Window Facility.

To apply to take part in the Funding for Lending Scheme, email applications@bankofengland.co.uk or call + 44 (0) 203 461 6327 / +44 (0) 20 3461 5928. You will be asked to fill out an authorised signatory evidence form.

At the end of the application process, you will receive a Scheme Letter and Extension Letter, which must be signed by an authorised signatory and returned to us.

UK branches of banks incorporated overseas will be required to provide a legal capacity opinion on their letter, and may also be asked to provide a country opinion. 

PDF Pro forma legal opinion: Funding for Lending Scheme (capacity issues only)

PDF Pro forma legal opinion: Funding for Lending Scheme (country and capacity issues) 

If you are not the primary entity in your group, we may require a guarantee and a legal opinion on the guarantor’s legal capacity and enforceability of a guarantee. These must follow standard pro-forma:

Word Pro forma guarantee

Word Pro forma legal opinion on the guarantee

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

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

06 June 2018

7 days

07 June 2018

14 June 2018

13 June 2018

7 days

14 June 2018

21 June 2018

20 June 2018

7 days

21 June 2018

28 June 2018

27 June 2018

8 days

28 June 2018

06 July 2018

05 July 2018

6 days

06 July 2018

12 July 2018

11 July 2018

7 days

12 July 2018

19 July 2018

18 July 2018

7 days

19 July 2018

26 July 2018

25 July 2018

8 days

26 July 2018

03 August 2018

02 August 2018

6 days

03 August 2018

09 August 2018

08 August 2018

7 days

09 August 2018

16 August 2018

15 August 2018

7 days

16 August 2018

23 August 2018

22 August 2018

7 days

23 August 2018

30 August 2018

29 August 2018

7 days

30 August 2018

06 September 2018

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 our consultation paper 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

We are currently carrying out further analysis and a review of consultation responses, and will post updates here in due course.

This page was last updated 19 June 2018
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