June 19, 2020 / 10:17 AM / 2 months ago

Bank of England ends emergency COVID liquidity support

LONDON, June 19 (Reuters) - The Bank of England said it would stop offering emergency sterling liquidity support to British financial institutions hit by the coronavirus crisis at the end of this month due to a tailing off in demand and improved market conditions.

The BoE revived its Contingent Term Repo Facility (CTRF) in March for the first time since 2012, as market conditions deteriorated. The facility lent billions of pounds initially, but has seen little or no demand over the past couple of months.

Last month the BoE said it would stop offering three-month loans under the programme, and on Friday it said it would hold its last weekly tender for one-month funds on June 26.

“CTRF operations can be rapidly reintroduced at any stage if justified by market conditions. The Bank stands ready to do so if necessary and will continue to monitor market conditions closely,” it said. (Reporting by David Milliken Editing by William Schomberg)

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