Liquidity insurance: Difference between revisions
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imported>Doug Williamson (Create the page. Source: Bank of England Red Book June 2015, p11.) |
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==See also== | ==See also== | ||
*[[Bank of England]] | *[[Bank of England]] | ||
*[[Collateral]] | |||
*[[Collateral transformation]] | *[[Collateral transformation]] | ||
*[[Contingent Term Repo Facility]] | *[[Contingent Term Repo Facility]] | ||
Revision as of 16:32, 7 August 2016
Bank of England.
The Bank of England's (the 'Bank's') liquidity insurance facilities are part of its Sterling Monetary Framework (SMF).
The liquidity insurance facilities are the Bank's:
- Indexed Long Term Repo (ILTR) operations.
- Discount Window Facility (DWF).
- Contingent Term Repo Facility (CTRF).
Their purpose is to provide a 'liquidity upgrade' or 'collateral transformation' facility for banks and other SMF participants, thereby improving the liquidity of the bank (or other participating institution).
The ILTR is designed for the most predictable and regular needs.
The DWF is tailored for the particular short and medium term needs of individual institutions.
The CTRF is for use in conditions of exceptional and market-wide stress.
