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Consultations & legislation
01 August 2003
Under the cash ratio deposit scheme, certain institutions authorised under the Financial Services and Markets Act 2000 to accept deposits (such as banks and building societies) place non-interest bearing deposits at the Bank of England. The Bank invests these deposits and the income earned is used to fund the costs of the Bank’s sterling liquidity, monetary policy and financial stability operations, which benefit sterling deposit takers. The scheme was placed on a statutory footing in the Bank of England Act 1998, with effect from 1 June 1998. At that time, the Government made a commitment to review the scheme after five years. This paper sets out the conclusions of that review.
As part of the review, the Treasury has already consulted all institutions that are currently eligible institutions under the scheme, and their representative bodies, about their experience since 1998. Two representative bodies and 25 eligible institutions responded.
We are sending this consultation to all eligible institutions under the scheme, and their representative bodies. Following receipt of responses, we will inform the interested parties of the results and the action that has been decided on, or contact them with further questions that have been raised as a result of this consultation.
Responses are invited by 31 October 2003 and should be sent to:
David Curtis
Head of the Expenditure Branch
Debt and Reserves Management Team
HM Treasury
1 Horse Guards Road
LONDON
SW1A 2HQ
Email: CRD-review@hm-treasury.gov.uk
to whom any questions or comments about the consultation should also be addressed. Representative bodies are requested to make clear on whose behalf they are making their submission. Reponses may be made public unless confidentiality is specifically requested.
This consultation is being made in accordance with the terms of the Government’s Code of Practice on written consultations.
The Review of the Cash Ratio Deposit Scheme is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
