Funding schemes and lending in other currencies

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

Term Funding Scheme

The Term Funding Scheme (TFS) was launched in 2016, and provided funding to banks and building societies at rates close to Bank Rate. The TFS was open to drawdowns from 19 September 2016 to 28 February 2018. It was designed to encourage banks and building societies to reflect cuts in Bank Rate in the interest rates faced by households and businesses.  It also encouraged them to lend by providing a cost-effective source of funding.  It was launched by the Monetary Policy Committee as monetary policy tool.

The TFS allowed firms to borrow central bank reserves in exchange for eligible collateral. It was open to firms that were members of the Sterling Monetary Framework and signed up to our Discount Window Facility.

When it was launched, the TFS was operated as part of the Asset Purchase Facility (APF).  However, as part of our new capital framework, in January 2019 all TFS drawings, and the collateral backing them, were transferred from the APF to the Bank of England's balance sheet.

As a result of this, TFS drawings now appear on the Bank of England Weekly Report.

The operational details of how we operate the Term Funding Scheme are contained in the Term Funding Scheme Market Notice.

Term Funding Scheme usage and lending data

We publish quarterly data showing, for each group participating in the TFS, the amount borrowed from the scheme and the net quarterly flows of lending to UK households and firms.

Provisional publication dates: 7 February 2019

TFS Group Certified lending to UK households, PNFCs and NBCPs (£mn) Aggregate outstanding TFS drawings as at 30/09/2018 (£mn)
Base Stock of loans as at 30/06/16 Q4 2017 net lending flow Cumulative net lending from 30/06/16 - 31/12/17
TOTAL 1,517,920 8,121 67,965 126,448
AIB Group (UK) 6,338 29 21 250
Aldermore 6,764 203 1,721 1,671
Arbuthnot Latham 577 103 269 225
Atom Bank - 314 1,018 355
Bank of Ireland 25,555 -276 -1,035 1,278
Barclays 210,867 -232 2,576 12,600
Buckinghamshire Building Society 168 2 19 18
Cambridge Building Society 919 12 139 135
Charter Court Financial Services 2,799 519 2,795 1,148
Close Brothers 4,916 72 392 495
Clydesdale 29,494 476 2,564 2,250
Co-operative 19,372 163 -672 960
Coventry Building Society 31,406 453 4,431 4,250
Cumberland Building Society 1,775 24 203 290
Dudley Building Society 256 5 32 34
FirstRand Bank 2,491 52 714 679
Furness Building Society 684 11 79 110
Hampshire Trust Bank 289 5 311 135
Hanley Economic Building Society 298 1 13 25
Hinckley & Rugby Building Society 500 13 121 108
Holmesdale Building Society 131 - 9 -
ICICI Bank 214 7 103 113
Investec Bank 3,640 292 454 635
Ipswich Building Society 399 10 79 45
Julian Hodge Bank 622 70 150 70
Leeds Building Society 12,132 375 2,756 1,225
Leek United Building Society 701 18 97 132
Lloyds Banking Group 398,534 -553 -6,101 19,927
Loughborough Building Society 228 -1 -4 11
Mansfield Building Society 257 5 33 46
Market Harborough Building Society 296 1 -29 45
Marsden Building Society 297 - - 15
Melton Mowbray Building Society 330 5 29 30
Metro Bank 4,576 890 3,982 3,801
Monmouthshire Building Society 799 11 19 59
National Counties Building Society 1,088 17 189 150
Nationwide Building Society 181,238 -157 8,339 17,000
Newbury Building Society 762 8 86 124
Newcastle Building Society 2,485 -10 189 311
Northern Bank 4,768 -70 154 350
Nottingham Building Society 2,909 64 443 588
OakNorth Bank 78 80 438 182
OneSavings Bank 4,923 395 1,920 1,500
Paragon Bank 10,598 75 415 944
PCF Bank 35 16 65 25
Principality Building Society 6,902 272 969 675
Progressive Building Society 1,429 6 42 50
RBS Group 214,889 111 15,225 19,000
Saffron Building Society 814 15 -35 41
Sainsbury's Bank 3,555 254 1,372 950
Santander 188,725 1,204 1,363 10,750
Secure Trust Bank 1,103 64 479 263
Shawbrook Bank 3,458 113 847 875
Skipton Building Society 13,739 504 2,012 1,850
Tandem Bank 188 -26 44 50
Teachers Building Society 212 4 20 30
Tesco Bank 9,070 571 2,680 1,339
Tipton & Coseley Building Society 294 2 -6 15
TSB Bank 27,876 82 5,109 6,470
Virgin Money 29,598 874 6,865 6,387
West Bromwich Building Society 4,779 36 222 461
Yorkshire Building Society 33,778 538 1,232 2,900

In line with the TFS Operating Procedures, Participants were required to audit their lending data following the closure of the drawdown window. These audits have led to some data revisions. Lending data and Borrowing Allowance figures are now considered to be final. No firms were asked to repay their drawings as a result of the data revisions.

More detailed data and 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. 

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: 7 February 2019

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

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 

06 February 2019

7 days

07 February 2019 

14 February 2019  

13 February 2019

7 days

14 February 2019 

21 February 2019  

20 February 2019

7 days

  21 February 2019  28 February 2019 
27 February 2019 7 days  28 February 2019 07 March 2019  
06 March 2019 7 days  07 March 2019  14 March 2019 
13 March 2019 7 days  14 March 2019  21 March 2019 
20 March 2019 7 days   21 March 2019 28 March 2019  
27 March 2019 7 days  28 March 2019  04 April 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 21 January 2019
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