China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Barclays used BoE lending facility: sources
LONDON (Reuters) - Britain's third biggest bank Barclays Plc (BARC.L) borrowed 314 million pounds ($622 million) from the Bank of England via the central bank's standing lending facility, sources familiar with the matter said on Tuesday.
The BoE said earlier on Tuesday that it lent the money through its emergency lending facility on Monday, the first time the facility had been used since credit conditions deteriorated a month ago.
It did not identify the borrower, but sources said Barclays borrowed the money, although they said it was not related to liquidity concerns -- rather to square the bank's accounts at the end of the day.
One source said Barclays was short the amount in its account, which is not uncommon, and missed the window to borrow the money from another bank by a 1620 London time deadline set each day.
The Wall Street Journal online said Barclays attempted to borrow the money from HSBC (HSBA.L) but did not manage it in time.
Banks are not allowed to have BoE accounts that are short at the end of the day, so an interbank loan or the BoE standing facility can be used to plug any gap.
The Bank's standing facility allows participants to borrow unlimited amounts of money, but they must pay one percentage point above the base rate, which is currently at 5.75 percent.
It is not uncommon for banks to use the facility and it was last tapped in July, but turmoil in credit markets prompted speculation it may have been used due to liquidity problems.
Barclays and HSBC declined to comment.
(Reporting by Steve Slater)
