2 April 2008
Review of the Cash Ratio Deposit Scheme - Consultation on proposed changes
The cash ratio deposit (CRD) scheme was placed on a statutory footing in the 1998 Bank of England Act. Under its terms certain institutions authorised under the Financial Services and Markets Act 2000 to accept sterling deposits (such as banks and building societies) place non-interest bearing deposits at the Bank of England. The Bank of England invests these deposits and the income earned is used to fund the costs of its monetary policy and financial stability functions, which benefit sterling deposit takers.
As part of the last review of the cash ratio deposit scheme (which took place in 2003) the Government made a commitment to conduct a further formal review at the latest in five years time. The beginning of that review was announced by the Chief Secretary to the Treasury in a written Ministerial statement on 14th May 2007. A public consultation, detailing the findings of the review and its proposed changes to the CRD scheme, was launched in August 2007. This consultation closed on 2nd November 2007.
Review of the Cash Ratio Deposit Scheme - Consultation on proposed changes 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.
Media links
- Review of the Cash Ratio Deposit Scheme: consultation on proposed changes (PDF file, 260KB)
- Review of the Cash Ratio Deposit Scheme: summary of responses (PDF file, 555KB)