BoE reveals £50bn liquidity facility

The scheme will allow the banks to use the Treasury bills as collateral on loans, loosening up the interbank lending market and reducing banks' funding costs. The facility will last a year initially.

The BoE said it would accept Aaa rated European covered bonds, Aaa rated tranches of European non-synthetic residential mortgage-backed securities (RMBSs) and asset-backed securities, Aa3 or higher sovereign debt from G-10 nations, Aaa rated G-10 agency debt, and Aaa rated debt from US government-sp