Fisher: Banks will cope after SLS

BANKS are well on the way to preparing for the end of the Bank of England’s special liquidity scheme, according to Bank executive director Paul Fisher.

In a paper on the Bank’s collateral policy published yesterday, Fisher said:

“The banks have made good, early progress in reducing their use of the scheme, unwinding the collateral swaps ahead of their contractual maturities,” Fisher said.

“It is expected that the banks will be able to generate liquidity using their mortgage assets in the private market or by raising funding through other markets,” he added.