(2019), “Waiting for the exit: QT and the Bank of England’s long-term balance sheet”, speech at the European Bank for Reconstruction and Development, London, 17 July; and Bank of England (2022), Short Term Repo Facility - Provisional Market Notice, 4 August. 25. The Bank of England had no material or persistent leaks in their floor throughout the period of excess reserves. 26.
Liquidity provided through asset purchases can be lent out again via securities lending, thereby mitigating the encumbrance of collateral. 27. Tighter collateral requirements provide additional incentives. Counterparties can only borrow from the standing loan facility if they provide high quality assets.