Statistical Notice 2023/11

The Bank of England (BoE) has published a new statistical notice (2023/11) relating to the HM Treasury’s intention to replace the Cash Ratio Deposit (CRD) scheme with a new levy to fund the operations of the Bank. In this notice, the BoE provides some background information on the intended change and asks financial institutions to comment on the ongoing consultations in this context (please see EventID 23889 and EventID 23862 in this context).
In detail, the BoE notes that the change is based on the Treasury’s intention to create a more dependable funding scheme for the Bank as outlined in a related policy statement of 2022. Following corresponding changes to the BoE’s powers in the Financial Services and Markets Act 2023, the BoE is now able to impose a levy on eligible institutions, with the amount determined by the Bank in accordance with regulations set by HM Treasury.
As a consequence, the BoE has now launched the above noted consultations. While the consultation in EventID 23889 seeks feedback on appropriate regulatory provisions, the second consultation (EventID 23862) requests comments on the overall framework of the new levy scheme, including the general operation of the framework, the way the annual levy will be charged to financial institutions, and the costs that will be covered by the levy.
The BoE welcomes any comments and suggestions on the two consultations up to December 15, 2023. Any feedback should be provided via e-mail to BoELevy@bankofengland.co.uk or via post to
Finance Strategy Team
Bank of England
Threadneedle Street
London
EC2R 8AH