Bank of England extends liquidity scheme

The scheme, which offered banks the ability to take susbstaintial loans using mortgage assets as collateral, was originally due to close on 21 October. The Bank says it has extended the scheme due to the disorderly market conditions seen in recent days. A spokesman says: “The Bank of England is today announcing an extension of the drawdown period for its Special Liquidity Scheme to provide additional time for banks to plan their access to the scheme in an orderly fashion.” The scheme will now run until 30 January 2009, with the Bank of England’s proposals for permanent reform of the mark...