Term Funding Scheme

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UK - Bank of England - interest rates.


Bank of England’s TFS was established in 2016 as part of a package of measures designed to support growth and return UK inflation to its target.

The TFS provides funding to participating banks and building societies at (low) interest rates close to Bank Rate.

The design of the TFS reflected its primary initial objective which was to reinforce the pass‑through of the August 2016 cut in Bank Rate to the interest rates faced by households and businesses, against a backdrop where Bank Rate was close to zero.

The TFS aimed to achieve this objective without significant compression in lenders’ net interest margins or the supply of credit to the economy.

The TFS was closed for new drawings in 2018.

See also