BOE Revamps Funding Tool for Banks Used Just Once Since 2008

The Bank of England has lowered the pricing on a funding tool designed to help banks withstand short-term liquidity shocks, a move that may boost the attractiveness of a facility only used once since its creation in 2008.

The central bank announced lower and fixed pricing for drawdowns from the Discount Window Facility, one of several measures it launched during the financial crisis to backstop markets. The DWF allows eligible banks, brokers and clearinghouses to borrow UK government bonds or cash against a wide set of less-liquid assets.