BoE help for Northern Rock 'hits £13bn'

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The Bank of England's financial backing for Northern Rock is rapidly approaching £13bn, according to New Star economist Simon Ward.

Ward says the ‘other assets’ category on the Bank’s balance sheet – usually a fairly static figure – has risen by another £2.3bn this week and now stands at £12.9bn since the Northern Rock debacle began. Although the Bank has not clarified what the ‘other assets’ category represents, Ward says it provides the “best available estimate of the Bank’s support”. Ward adds the Bank’s injection of funds into Northern Rock has contributed to an easing of money market conditions in recent weeks. He points out reserves at the Bank rose from £19.8bn on 12 September, just before the run on the mo...

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