Introduction of the Extended Collateral Term Repo Facility

In light of the continuing exceptional stresses in financial markets, the Bank of England is today announcing the introduction of a new contingency liquidity facility, the Extended Collateral Term Repo (ECTR) Facility.
Published on 06 December 2011
This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short term sterling liquidity. There is currently no shortage of short-term sterling liquidity in the market. But should that position change, the new Facility gives the Bank additional flexibility to offer sterling liquidity in an auction format against the widest range of collateral. The introduction of the ECTR Facility underlines the Bank’s commitment to take appropriate measures to maintain UK monetary and financial stability.

 

PDFIntroduction of the Extended Collateral Term Repo Facility

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