Bank of England

Central Banks Increase Liquidity Support to Global Financial System

On November 30, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Fed and the Swiss National Bank announced coordinated actions to increase their capacity to provide liquidity support to the global financial system. Pricing on existing temporary U.S. dollar liquidity swap arrangements will be lowered by 50 basis points to a rate of the U.S. dollar overnight index swap rate plus 50 basis points, and the central banks will establish temporary bilateral liquidity swap arrangements to offer liquidity in non-domestic currencies other than the U.S. dollar. Fed Release.

BoE Updates Collateral Eligibility and Disclosure Rules

On July 19, the Bank of England released a Market Notice stating that it intends to include portfolios of loans to individuals and non-banks as eligible collateral for its Discount Window Facility, and that the eligibility requirements for ABS and covered bonds will be expanded to include enhanced disclosure of loan level and transaction information.  The expansion of eligible collateral is intended to occur during 2011, and there will be an implementation period of 12 months following the publication of detailed requirements regarding the enhanced disclosure. BoE Market Notice.