imported>Doug Williamson |
imported>Doug Williamson |
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| ''Bank of England - Sterling Monetary Framework - liquidity insurance.''
| | A tax levied on certain transactions rather than on profits or on income. |
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| (DWF).
| | Duties include: import duties, excise duties, stamp duty and stamp duty land tax. |
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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).
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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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| 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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| Disclosure of an institution's use of the DWF risks worsening the original stress which caused the need to use it.
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| For this reason, disclosure of uses of the DWF is time-lagged and averaged across participating institutions and over a calendar quarter.
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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== | | ==See also== |
| *[[Bank of England]] | | * [[Customs duty]] |
| *[[Central counterparty]] | | * [[European Customs Union]] |
| *[[Collateral]] | | * [[Stamp duty]] |
| *[[Collateral transformation]] | | * [[Stamp duty land tax]] |
| *[[Contingent Term Repo Facility]] | | * [[Tariff]] |
| *[[Gilts]]
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| *[[Indexed Long-Term Repo operations]]
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| *[[Lender of last resort]]
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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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| *[[Regulation]]
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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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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:The_business_context]]
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| [[Category:Financial_products_and_markets]]
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