BoE to change the way bank pumps cash into the markets, says Mark Carney

The Bank of England (BoE) is planning to make changes to the way the Bank provides cash, BoE Governor Mark Carney said yesterday.

Speaking at an event to celebrate the 125th anniversary of the Financial Times, Carney said that the bank may reduce charges to financial facilities like the Index Long-Term Repo.

This is expected to help banks accept less-stringent collaterals like mortgage-backed securities in exchange for cash.

Carney said: “Our facilities are not ornamental. They are there to be used by banks to access money and high-quality collateral. We are offering money and collateral for longer terms.

“The range of assets we will accept in exchange will be wider, extending to raw loans and, in fact, any asset of which we are capable of assessing the risks. And using our facilities will be cheaper. In some cases the fees are being more than halved.”