Barclays emerged last night as the financial institution that borrowed £1.6bn from the Bank of England's credit facility - the second time this month that the high street bank has had to obtain emergency funding from the UK's lender of last resort, The Times reports.
Barclays said that a technical glitch with the market settlement system forced it to turn to the central bank for funds. The identity of the bank with a £1.6bn shortfall galvanised the City yesterday, coming amid renewed concerns about the willingness of banks to lend to one another. Concern over solvency after the credit crisis have sent the cost of some borrowing between banks soaring. The London Interbank Offered Rate (Libor), at which banks lend between each other for 90 days, rose yesterday to 6.63%. With the base rate expected to stay at 5.75% over the next three months, analysts s...
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