United Kingdom: Financial Sector Assessment Program-Review of the Bank of England’s Liquidity Provision Framework-Technical Note
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper provides a review of the liquidity provision framework and recent developments in the United Kingdom. The Bank of England’s (BoE’s) Sterling Monetary Framework is the mechanism used in the United Kingdom to direct liquidity provision. The BoE’s relatively wide-ranging and accessible liquidity insurance framework raises three key questions and four other issues relevant to financial stability. The quantification of implications of the liquidity framework for the BoE balance sheet is still a work in progress. Safeguards are generally sufficient, although the BoE should ensure that lower level of supervisory scrutiny directed at small- and medium-sized enterprises does not adversely impact its horizon-scanning for firms at risk of requiring liquidity support.
Series:
Country Report No. 2016/159
Subject:
Asset and liability management Banking Financial crises Financial institutions Financial regulation and supervision Foreign currency liquidity Insurance Lender of last resort Liquidity Liquidity risk
English
Publication Date:
June 17, 2016
ISBN/ISSN:
9781475559446/1934-7685
Stock No:
1GBREA2016007
Pages:
25
Please address any questions about this title to publications@imf.org