{"id":2514,"date":"2007-12-18T13:18:00","date_gmt":"2007-12-18T13:18:00","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=2514"},"modified":"2025-03-27T15:48:34","modified_gmt":"2025-03-27T15:48:34","slug":"boe-support-confined-to-rock-no-covert-lending-to-other-banks","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=2514","title":{"rendered":"BoE support confined to Rock \u2013 no covert lending to other banks"},"content":{"rendered":"

“Other assets” on the Bank of England’s balance sheet rose by £29.3 billion between 12th September – just before the authorities stepped in to support Northern Rock – and 12th December, the latest available date. Northern Rock itself has claimed to have borrowed a smaller amount from the Bank – the BBC’s Robert Peston<\/a> quotes a current figure of £26 billion. The discrepancy has led to speculation that the Bank of England has been providing covert support to other distressed banks. <\/p>\n

The latest Bank of England Quarterly Bulletin<\/a><\/em>, published yesterday, suggests this is not the case. Table B on page 509 of the Bulletin<\/em> (page 27 on PDF) gives further details of changes in the Bank’s balance sheet between 5th September and 7th November. “Foreign currency denominated assets” are reported to have risen by £5 billion between these two dates, an increase that will have contributed to growth in “other assets” on the weekly Bank return. There was an identical rise of £5 billion in “foreign currency denominated liabilities” over the same period; both changes may reflect the Bank’s normal provision of banking services to other central banks. <\/p>\n

Assuming “other assets” continue to be inflated by about £5 billion by foreign currency transactions undertaken since early September, the weekly Bank return suggests current lending to Northern Rock of about £24 billion (£29.3 billion minus £5 billion), close to estimates emanating from the troubled bank. <\/p>\n","protected":false},"excerpt":{"rendered":"

“Other assets” on the Bank of England’s balance sheet rose by £29.3 billion between 12th September – just before the authorities stepped in to support Northern Rock – and 12th December, the latest available date. Northern Rock itself has claimed to have borrowed a smaller amount from the Bank – the BBC’s Robert Peston quotes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2514","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2514"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2514\/revisions"}],"predecessor-version":[{"id":4823,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2514\/revisions\/4823"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}