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 31/01/18 (£mn)
Total of which net FLS Extension drawings
TOTAL 31,449 31,449
Aldermore 0 0
Arbuthnot Latham 0 0
Bank of Cyprus 180 180
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 220 220
FirstRand Bank 34 34
Furness Building Society 0 0
Hinckley & Rugby Building Society 0 0
Investec Bank 570 570
Julian Hodge Bank 37 37
Kleinwort Benson 0 0
Leeds Building Society 0 0
Leek United Building Society 0 0
Lloyds Banking Group 23,100 23,100
Mansfield Building Society 10 10
Market Harborough Building Society 36 36
Metro Bank 0 0
Monmouthshire Building Society 0 0
Nationwide Building Society 0 0
Newbury Building Society 0 0
Nottingham Building Society 230 230
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 101 101
Skipton Building Society 0 0
Teachers Building Society 5 5
Tesco Bank 0 0
United Trust Bank 35 35
Virgin Money 1,737 1,737
Wesleyan Bank 35 35
Yorkshire Building Society 1,700 1,700
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 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.

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
04 April 2018 7 days 05 April 2018 12 April 2018
11 April 2018  7 days 12 April 2018 19 April 2018
18 April 2018  7 days 19 April 2018 26 April 2018
25 April 2018  7 days 26 April 2018 03 May 2018
02 May 2018  8 days 03 May 2018 11 May 2018
09 May 2018  6 days 11 May 2018 17 May 2018
16 May 2018  7 days 17 May 2018 24 May 2018
23 May 2018  7 days 24 May 2018 31 May 2018
30 May 2018  7 days 31 May 2018  07 June 2018
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


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 04 April 2018
Was this page useful?
Add your details...