The Bank of England’s risk management approach to collateral referencing LIBOR for use in the Sterling Monetary Framework

A Discussion Paper
Published on 27 June 2019

The purpose of this Discussion Paper is to seek initial feedback on the Bank of England’s (the Bank) approach to the risk management of collateral referencing LIBOR for use in the Sterling Monetary Framework (SMF). The paper outlines a number of risk management approaches currently under consideration by the Bank to ensure that it remains well placed to provide liquidity insurance in support of financial stability. Views on these questions are sought, both from firms that are signed up (or expect to sign up) to the SMF and from any other interested parties. Responses will be used to help frame the Bank’s future risk management approach with regards to collateral referencing LIBOR, which it will publish in due course after careful consideration.

Comments should be sent by email to LIBORcollateralDP@bankofengland.co.uk and should reach the Bank by 27 September 2019.

PDF The Bank of England’s risk management approach to collateral referencing LIBOR for use in the Sterling Monetary Framework

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