Monday, Apr 16, 2018

2K per worker

Torygraph: Bank of England warned lenders end of £127bn cheap funding scheme posed 'systemic risk'

Lloyds, RBS, Nationwide and VirginMoney have borrowed around 60bn under the BoE Funding for Lending (a scheme to lower the costs of capital). There are about 30 million workers in the UK, so this is about 2K across each and every worker. Scheme is closing so this is more effective tightening which again, like mandatory saving auto enrollment bypasses interest rates.

Posted by stillthinking @ 07:53 AM (903 views) Add Comment

1 Comment

1. stillthinking said...

As a recap, the Funding for Lending has allowed the banks to exchange their "collateral" for treasuries, which have gone up in value because they have been bought by the BoE by the billions. What you ask is such qualifying collateral? The BoE has three levels of collateral, A B and C. And all of these qualify for exchange to treasuries.
Grade C, the cr*p rating, which is replacing treasuries is;

UK and amazingly USA car loans.
UK and USA student loans.
UK and USA mortgage debt(! the non-recourse ones but don't worry backed by yet another scheme)
UK and USA consumer loans.

https://www.bankofengland.co.uk/-/media/boe/files/markets/eligible-collateral/summary-table-of-collateral.pdf?la=en&hash=BED833C8E13E862ABF426D3E35A34ACF2A5AB649

Monday, April 16, 2018 08:25AM Report Comment
 

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