imported>Doug Williamson |
imported>Doug Williamson |
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| ''Bank of England.''
| | Broadly, divestiture is the opposite of investment. |
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| (DWF).
| | It usually refers to the sale of a business segment or subsidiary business. |
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| The Bank of England's Discount Window Facility (DWF) is one of three key components of the liquidity insurance part its Sterling Monetary Framework (SMF).
| | It can also refer to the sale of any significant asset or group of assets. |
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| The DWF is designed for institution-specific stresses needing liquidity of tailored amounts and timing, with time-lagged disclosure to the market.
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| | Also known as ''divestment''. |
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| The DWF's key features are:
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| *Initiated on demand by the participating institution.
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| *Rollable 30-day term for banks and similar institutions, and five-day for central counterparties.
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| *Usually gilts lent against less liquid but high credit quality collateral.
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| *Prices based on collateral type and size of drawing.
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| | == See also == |
| | * [[Investment]] |
| | * [[Subsidiary]] |
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| Disclosure of an institution's use of the DWF risks worsening the original stress which caused the need to use it.
| | [[Category:The_business_context]] |
| | | [[Category:Corporate_finance]] |
| For this reason, disclosure of uses of the DWF is time-lagged and averaged across participating institutions and over a calendar quarter.
| | [[Category:Investment]] |
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| The intention is that any drawing under the DWF should have ended before data on it are published.
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| The other two key facilities in the Bank's liquidity insurance structure are the Contingent Term Repo Facility (CTRF) and the Bank's Indexed Long-Term Repo (ILTR) operations.
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| ==See also==
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| *[[Bank of England]]
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| *[[Central counterparty]]
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| *[[Collateral]]
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| *[[Collateral transformation]]
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| *[[Contingent Term Repo Facility]]
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| *[[Gilts]]
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| *[[Indexed Long-Term Repo operations]]
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| *[[Liquidity]]
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| *[[Liquidity insurance]]
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| *[[Official Bank Rate]]
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| *[[Operational Standing Facilities]]
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| *[[Repo]]
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| *[[Reserves]]
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| *[[Sterling Monetary Framework]]
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| *[[Stress]]
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Broadly, divestiture is the opposite of investment.
It usually refers to the sale of a business segment or subsidiary business.
It can also refer to the sale of any significant asset or group of assets.
Also known as divestment.
See also