Second, it is having a noticeable effect on the composition of bank funding. It is important to keep in mind that funding is fungible for banks. It is not possible to say to what purpose particular sources of funds are being put or which they are replacing.
But the funding structure of the banking system has changed significantly over the past six months as a result of the TFF together with the increase in deposit funding. There has been a reduction in offshore wholesale funding, which is of a very similar size to the takeup of TFF funding (Graph 5). The amount of domestic wholesale funding is little changed.