18
Sep
Bank to extend liquidity deadline
The Bank of England has revealed that it is extending the deadline
for high street banks to draw down from its Special Liquidity
Scheme.
Originally the deadline was October 21st, but this has now been
extended to January 30th in a move aimed at providing more leeway
for lenders in the light of current stock market volatility
following the collapse of Lehman Brothers and the takeover of HBOS
by Lloyds TSB.
It said this should enable banks to proceed with accessing
liquidity in an "orderly" fashion.
The move was welcomed by Council of Mortgage Lenders director
general Michael Coogan, who said: "In making a clear announcement
today, the Bank has shown a welcome flexibility to respond to
difficult market conditions."
He added that a "removal of constraints to mortgage funding" is an
important factor in the recovery of the housing market.
