BoE to offer extra liquidity around EU referendum

The Bank of England has announced that it will offer billions of pounds of extra liquidity to banks in the weeks around the EU referendum.

Related topics:  Finance News
Rozi Jones
8th March 2016
bank money building

The three additional Indexed Long-Term Repo operations will allow banks, building societies and broker-dealers to obtain liquidity in exchange for assets such as mortgage loans.

This will enable banks to carry on lending if markets become stressed, and has been described as a 'precautionary measure'.

The Bank of England said it will 'continue to offer liquidity insurance via its other facilities' and will 'continue to monitor market conditions carefully and keep its operations under review'.

The operations are in addition to the regular ILTR operations which will continue to take place once a month.

Mark Carney is due in parliament today to give evidence on the Bank's preparations for the EU referendum.

More like this
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.