Covenant and Official Bank Rate: Difference between pages

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1. A formal legal agreement to take, or not to take, certain actions.
1. ''UK.''


2. In loan documentation, a promise given by the borrower to take, or not to take, relevant actions.<ref>http://www.treasurers.org/node/8842</ref>  For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt.
The official reference interest rate for the UK determined by the Bank of England's Monetary Policy Committee (MPC).


3. In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.
The Official Bank Rate is the rate used for certain key transactions between the Bank of England ('the Bank') and financial institutions.


== See also ==
It is designed to have the effect of determining the level of near risk-free interest rates throughout the UK financial sector.
* [[Accounting exposure]]
 
* [[Asset cover]]
 
* [[Event of default]]
It is used by many financial institutions when setting interest rates for certain of their products.
* [[Financial covenant]]
 
* [[Incurrence covenant]]
 
* [[Interest cover]]
The Official Bank Rate is often known - externally to the Bank - as the 'Bank of England Base Rate' (BBR).
* [[Loan agreement]]
 
* [[Maintenance covenant]]
Within the Bank of England, it is often abbreviated to 'the Bank Rate'.
* [[Net worth]]
 
* [[Restrictive covenant]]
 
* [[Waiver]]
2.
 
Similar interest rates in other jurisdictions.




==References==
== See also ==
<references />
* [[Bank of England]]
* [[Bank Rate]]
* [[Base rate]]
* [[Monetary Policy Committee]]
* [[MLR]]
* [[Reference rate]]
* [[Term Funding Scheme]]

Revision as of 14:13, 23 March 2020

1. UK.

The official reference interest rate for the UK determined by the Bank of England's Monetary Policy Committee (MPC).

The Official Bank Rate is the rate used for certain key transactions between the Bank of England ('the Bank') and financial institutions.

It is designed to have the effect of determining the level of near risk-free interest rates throughout the UK financial sector.


It is used by many financial institutions when setting interest rates for certain of their products.


The Official Bank Rate is often known - externally to the Bank - as the 'Bank of England Base Rate' (BBR).

Within the Bank of England, it is often abbreviated to 'the Bank Rate'.


2.

Similar interest rates in other jurisdictions.


See also

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