BoE begins work on non-bank emergency backstop
Central bank planning to roll out facility to insurers and pension funds as first step
The Bank of England is developing an emergency lending facility for key non-bank financial institutions (NBFIs) in the UK, as a step towards bolstering the resilience of critical markets.
Andrew Hauser, executive director for markets, said there were “daunting policy and operational questions to overcome”, but the central bank will begin the design phase “with immediate effect”.
Hauser spoke on September 28, a year to the day since the BoE was forced to make an emergency intervention in
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