Monday, 24 June 2013

The Bank of England Balance Sheet - a five year view

I think it is probably worth preserving these images for posterity before the record disappears:

First is the asset side of the balance sheet which shows the Bank's response to the crisis, initially via short term operations and then via longer term operations as the crisis continued. Now the entire balance sheet (other than the small amount of Gilts, etc the bank holds to 'fund' itself) are 'other assets' - in other words just the balancing item of the liability side of the balance sheet.

And here is the liability side. You can see here the effects of the first round of QE and the slow relative drain of the reserves as they were amassed in the Asset Purchase Facilities cash account, only the be released back into the system over the last few months.

'Other Liabilities' includes the cash buffers of HM Treasury and the Consolidated and National Loan Funds as well as the Asset Purchase Facility.


Timeline

8 Oct 2008 - First Bank Rescue Package announced
19 Jan 2009 - Second Bank Rescue Package announced
29 Jan 2009 - Government and Bank of England set up the Asset Purchase Facility (APF)
5 Mar 2009 - Announcement of £200 bn of asset purchases (QE).
6 Mar 2009 - Govt increased stake in Lloyds banking group
Mar to Nov 2009 - First period of QE purchases
6 Oct 2011 - Announcement of a further £75bn of asset purchases (QE)
9 Feb 2012 - Announcement of a further £50bn of asset purchases (QE)
5 Jul 2012 - Announcement of a further £50bn of asset purchases (QE)
7 Oct 2011 to 31 Oct 2012 - Second period of QE purchases
9 Nov 2012 - Announcement of Quarterly Cash transfer from APF to HM Treasury (HMT)
Jan to Sep 2013 - Transfer of accumulated cash to Debt Management Office (DMO)
Jul 2013 - First Scheduled payment of excess cash in APF to DMO.


References