Liquidity support from the Bank of England: the Discount Window Facility - speech by Paul Fisher

Paul Fisher – the Bank’s Executive Director for Markets and member of both the Monetary Policy Committee (MPC) and the interim Financial Policy Committee (FPC) – speaks about the Bank’s operations to provide liquidity insurance to the banking system, and in particular the Discount Window Facility.
Published on 29 March 2012

Paul Fisher starts by outlining the principles underpinning the provision of liquidity insurance to the banking system. He notes that the Bank will only lend to commercial banks that are, in its judgment, solvent and viable for two policy related reasons. First, the need for a central bank to guard against moral hazard and, second, the imperative of protecting the central bank balance sheet (and hence public money) against the risk of loss.

PDFPress release


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