Eligible collateral for our lending facilities
The Bank lends through our market operations against collateral delivered by SMF participants. The collateral must be of sufficient quality and quantity to protect our balance sheet from any risk of a counterparty failing to repay what is owed. If this does happen, we can sell or retain the collateral to cover our loss.
We accept a broad range of collateral which are split into Level A, Level B and Level C collateral. A summary of eligible collateral that can be used again the Bank's facilities - see Summary table of collateral.
Collateral needed for each operation or facility
| Collateral | Level A | Level B | Level C |
|---|---|---|---|
| Intraday Liquidity | Y | N | N |
| Operational Standing Facility | Y | N | N |
| Short-Term Repo | Y | N | N |
| Indexed Long-Term Repo | Y | Y | Y |
| Discount Window Facility | Y | Y | Y |
| TFSME | Y | Y | Y |
| Contingent Term Repo Facility | Y | Y | Y |
| US Dollar Repo | Y | Y | Y |
| CNRF | Gilts only | N | N |