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BoE to make it easier for banks to borrow cash 

January 20, 2014
Oman Observer

British banks will be able to get cash from the Bank of England on easier terms from February 11 onwards to help avoid a repeat of the liquidity shortages that occurred in the financial crisis, the central bank said yesterday. They will be able to offer up lower-quality assets than now as collateral. The amount of money available will also fluctuate depending on the market environment rather than being a set amount.

Governor Mark Carney said in October he planned to make it easier for banks to use the lower-quality collateral to get funds – albeit at a price.He was responding to a review ordered by the central bank’s board that said changes since the financial crisis had not gone far enough.

Read more: Oman Observer

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