LegalizeThe Cash Ratio Deposits (Value Bands and Ratios) Order 2008
Made: 22nd May 2008
Coming into force: 2nd June 2008
In accordance with section 40(2) of the Bank of England Act 1998, a draft of this Order was laid before Parliament and approved by a resolution of each House of Parliament.
Citation and commencement
1
This Order may be cited as the Cash Ratio Deposits (Value Bands and Ratios) Order 2008 and comes into force on 2nd June 2008.
Revocation
2
The Cash Ratio Deposits (Value Bands and Ratio) Order 20042 is revoked.
Value bands and ratios
3
For the purposes of paragraph 4 of Schedule 2 to the Bank of England Act 1998 (cash ratio deposits), the value bands and the ratios applicable to them, expressed as a percentage, are as follows:
| Value band | Ratio |
|---|---|
| £0-£500 million | 0% |
| Over £500 million | 0.11% |
Signed
Frank Roy — Claire Ward — Two of the Lords Commissioners of Her Majesty’s Treasury — 22nd May 2008
Explanatory note
(This note is not part of the Order)
EXPLANATORY NOTE
Schedule 2 to the Bank of England Act 1998 (c.11) makes provision concerning the maintenance by certain institutions of cash ratio deposits with the Bank of England (“the Bank”). The institutions covered by these arrangements are those defined as “deposit-takers” by section 17 of, and sub-paragraphs (1A) to (1C) of paragraph 1 in Schedule 2 to, that Act. (Sub-paragraphs (1A) to (1C) were inserted into paragraph 1 by article 163 of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001, S.I. 2001/3649). The Bank is empowered by paragraph 3 of that Schedule to give such an institution a call notice specifying an amount it is expected to have on deposit with the Bank during a specified period. Under paragraph 4 of that Schedule, this depositable amount is to be calculated by multiplying so much of an institution’s average liability base as falls into each of the different value bands by the ratio applicable to that band, and adding up these amounts.
This Order specifies the value bands and the ratios applicable to them and revokes the Order which specified previous value bands and ratios.
Footnotes
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