BoE rebuffs SLS payback request

THE Bank of England has told Barclays and HSBC they cannot repay their remaining exposure to its Special Liquidity Scheme (SLS) early. It is understood it is worried the exit of key members from the scheme could undermine those remaining in it – most importantly state-backed Lloyds Banking Group and Royal Bank of Scotland. Barclays and HSBC both have around £1bn exposure to the scheme, which was set up in 2008 to inject liquidity into the ailing banking system. The scheme has a deadline of January next year.