Bank of England to accept equities as collateral
16 July 2015 London
Image: Shutterstock
Banks will soon be able to offer the Bank of England equities as collateral, executive director Chris Salmon has revealed.
Speaking about the Sterling Monetary Committees annual report, Salmon said that the Bank of England has 鈥渟tarted work to ensure there are no technical obstacles鈥� in its ability to accept equities as collateral.
Currently, the bank accepts government bonds, asset backed securities and pools of raw loans, but will work towards accepting equities in a bid to improve flexibility.
Salmon added: 鈥淕iven the complexities involved, the project will take some time to deliver.鈥�
Work is anticipated to continue throughout 2015, and to be finalised at some point next year.
Speaking about the Sterling Monetary Committees annual report, Salmon said that the Bank of England has 鈥渟tarted work to ensure there are no technical obstacles鈥� in its ability to accept equities as collateral.
Currently, the bank accepts government bonds, asset backed securities and pools of raw loans, but will work towards accepting equities in a bid to improve flexibility.
Salmon added: 鈥淕iven the complexities involved, the project will take some time to deliver.鈥�
Work is anticipated to continue throughout 2015, and to be finalised at some point next year.
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