Brightwell comments on the bank of England’s Contingent Non-Bank Financial Institution (NBFI) Repo Facility (CNRF)
Today, the Bank of England announced that applications are open for its new Contingent Non-Bank Financial Institution (NBFI) Repo Facility (CNRF).
The new facility, which will only be activated during episodes of severe gilt market dysfunction, will lend to participating insurance companies, pension schemes and liability driven investment funds to help maintain financial stability.
Commenting on the new facility, Wyn Francis, CIO, Brightwell said: “In times of market stress, having the right tools in place that are easily accessible and can be activated at short notice is imperative for the industry.
“The introduction of this innovative facility by the Bank of England will be a helpful addition for pension schemes and other non-bank financial institutions that play an increasingly important role in the financial system.
“Looking ahead, the Bank of England could consider broadening the scope of the tool to other core markets, including UK credit.”
Published:
28 / 01 / 2025
