Document Type

Case Study

Case Series

Broad-Based Emergency Liquidity

JEL Codes

G01, G28


In response to liquidity crunches in funding markets leading up to the Global Financial Crisis, the Bank of England introduced Extended-Collateral Long-Term Repo (ELTR) operations, which were a modified version of the regularly scheduled three-month open market operations. These operations were conducted by auction and accepted non-sovereign debt securities, including residential mortgage-backed securities, as collateral. The Bank of England routinely changed the frequency and size of the ELTRs in response to financial needs. At the peak, ELTRs occurred weekly with 40 billion British pounds (GBP) available for eligible institutions, and with GBP 180 billion outstanding. In order to drain this increased liquidity from the system, the Bank of England introduced the one-week bill, a non-monetary liability, which reached peak issuance in January 2009 at GBP 100 billion in a week. The Bank of England transitioned ELTR operations into permanent Indexed Long-Term Repo operations in June 2010, with several tweaks to auction design.

Date Revised