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.

The provisional publication dates are:

  • 1 March 2018
FLS Group Aggregate outstanding FLS drawings as at 30/09/17 (£mn)
Total of which net FLS Extension drawings
TOTAL 43,086 35,381
Aldermore 0 0
Arbuthnot Latham 107 107
Bank of Cyprus 75 75
Bath Investment & Building Society 0 0
Cambridge & Counties Bank 44 44
Cambridge Building Society 60 60
Charter Court Financial Services 0 0
Close Brothers 178 178
Coventry Building Society 1,000 1,000
Cumberland Building Society 325 325
FirstRand Bank 49 49
Furness Building Society 30 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 27,100 23,100
Mansfield Building Society 21 10
Market Harborough Building Society 51 51
Metro Bank 365 293
Monmouthshire Building Society 0 0
Nationwide Building Society 3,000 0
Newbury Building Society 44 44
Nottingham Building Society 380 230
OakNorth Bank 0 0
OneSavings Bank 282 282
Paragon Bank 109 109
Progressive Building Society 0 0
RBS Group 0 0
Saffron Building Society 25 25
Sainsbury's Bank 260 110
Santander 3,175 3,175
Secure Trust Bank 0 0
Shawbrook Bank 101 101
Skipton Building Society 400 400
Teachers Building Society 8 5
Tesco Bank 0 0
United Trust Bank 30 30
Virgin Money 2,037 2,037
Wesleyan Bank 35 35
Yorkshire Building Society 2,900 2,900
Other participants 290

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.

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 December 2017 7 days 07 December 2017 14 December 2017
13 December 2017 7 days 14 December 2017 21 December 2017
20 December 2017 21 days 21 December 2017 11 January 2018
10 January 2018 7 days 11 January 2018 18 January 2018
17 January 2018 7 days 18 January 2018 25 January 2018
24 January 2018 7 days 25 January 2018 01 February 2018
31 January 2018 7 days 01 February 2018 08 February 2018
07 February 2018 7 days 08 February 2018 15 February 2018
14 February 2018 7 days 15 February 2018 22 February 2018
21 February 2018 7 days 22 February 2018 01 March 2018
28 February 2018 7 days 01 March 2018 08 March 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 05 December 2017
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