AIRLINK 168.99 Increased By ▲ 11.58 (7.36%)
BOP 10.69 Increased By ▲ 0.32 (3.09%)
CNERGY 8.52 Increased By ▲ 0.20 (2.4%)
CPHL 96.70 Increased By ▲ 3.81 (4.1%)
FCCL 48.17 Increased By ▲ 1.44 (3.08%)
FFL 15.33 Increased By ▲ 0.45 (3.02%)
FLYNG 27.80 Increased By ▲ 0.82 (3.04%)
HUBC 139.75 Increased By ▲ 5.74 (4.28%)
HUMNL 12.90 Increased By ▲ 0.38 (3.04%)
KEL 4.60 Increased By ▲ 0.39 (9.26%)
KOSM 5.65 Increased By ▲ 0.26 (4.82%)
MLCF 63.80 Increased By ▲ 2.92 (4.8%)
OGDC 217.99 Increased By ▲ 9.47 (4.54%)
PACE 5.53 Increased By ▲ 0.13 (2.41%)
PAEL 44.55 Increased By ▲ 3.77 (9.24%)
PIAHCLA 18.90 Increased By ▲ 0.10 (0.53%)
PIBTL 10.50 Increased By ▲ 0.52 (5.21%)
POWER 12.24 Increased By ▲ 0.28 (2.34%)
PPL 175.70 Increased By ▲ 6.93 (4.11%)
PRL 36.43 Increased By ▲ 1.40 (4%)
PTC 23.70 Increased By ▲ 0.71 (3.09%)
SEARL 96.50 Increased By ▲ 3.40 (3.65%)
SSGC 39.10 Increased By ▲ 3.53 (9.92%)
SYM 14.03 Increased By ▲ 0.37 (2.71%)
TELE 7.26 Increased By ▲ 0.31 (4.46%)
TPLP 10.28 Increased By ▲ 0.28 (2.8%)
TRG 62.90 Increased By ▲ 2.23 (3.68%)
WAVESAPP 10.13 Increased By ▲ 0.43 (4.43%)
WTL 1.34 Increased By ▲ 0.04 (3.08%)
YOUW 3.75 Increased By ▲ 0.10 (2.74%)
BR100 12,572 Increased By 332.3 (2.71%)
BR30 37,936 Increased By 1542.5 (4.24%)
KSE100 116,800 Increased By 2646.3 (2.32%)
KSE30 36,025 Increased By 824.6 (2.34%)

LONDON: The Bank of England on Wednesday set out details of a new financial stability tool that insurers and pension funds will be able to use during severe turbulence in the British government bond market.

The BoE said the Contingent Non-Bank Financial Institution Repo Facility (CNRF) will allow companies to borrow cash from the BoE, using gilts they own as collateral, and would be open to applications from the fourth quarter of this year.

The new repo facility, partly outlined by the BoE this March and in September last year, is a response to crises that have affected Britain’s 2.4-trillion-pound ($3.1 trillion) government bond market in recent years.

A “dash for cash” when economies went into lockdown in March 2020 to tackle the COVID-19 pandemic forced central banks to inject liquidity into markets to stop some funds from freezing.

It prompted regulators to take a closer look at how non-banks such as funds, insurers and others, which account for half of UK financial assets, cope with market stresses.

Comments

Comments are closed.