Operational Standing Facilities: Difference between revisions

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*Provide a mechanism to bring about a close alignment of money market rates and the Official Bank Rate.
*Provide a mechanism to bring about a close alignment of money market rates and the Official Bank Rate.
*Provide a means for banks and other SMF participants to manage any temporary liquidity shortages arising from technical problems in their internal payments and settlement systems, or in the market-wide payments and settlements infrastructure.
*Provide a means for banks and other SMF participants to manage any temporary liquidity shortages arising from technical problems in their internal payments and settlement systems, or in the market-wide payments and settlements infrastructure.
Such temporary liquidity shortages are sometimes known as 'frictional' payment shocks.




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*[[Inflation]]
*[[Inflation]]
*[[Infrastructure]]
*[[Infrastructure]]
*[[Liquidity]]
*[[Liquidity insurance]]
*[[Liquidity insurance]]
*[[Monetary policy]]
*[[Monetary policy]]
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*[[Money market]]
*[[Money market]]
*[[Official Bank Rate]]
*[[Official Bank Rate]]
*[[Operations]]
*[[Sterling Monetary Framework]]
*[[Sterling Monetary Framework]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 16:51, 2 May 2022

Bank of England.

(OSF).

The Bank of England's Operational Standing Facilities (OSF) are part of its Sterling Monetary Framework (SMF).


The OSFs are the:

  • Operational Standing Lending Facility.
  • Operational Standing Deposit Facility.

The facilities are overnight and on demand, at predetermined fixed interest rates.


As part of the SMF, the OSFs' purposes are to:

  • Provide a mechanism to bring about a close alignment of money market rates and the Official Bank Rate.
  • Provide a means for banks and other SMF participants to manage any temporary liquidity shortages arising from technical problems in their internal payments and settlement systems, or in the market-wide payments and settlements infrastructure.


Such temporary liquidity shortages are sometimes known as 'frictional' payment shocks.


See also