Review of the cash ratio deposit scheme: proposed changes
This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
This consultation has concluded
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Detail of outcome
154 organisations were proactively invited to respond. We received three responses. A summary of these is published here.
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Seeking views on the cash ratio deposit scheme
A review of the cash ratio deposit scheme was announced by the Chief Secretary to the Treasury in a written statement to the House of Commons on 18 September 2012.
The cash ratio deposit (CRD) scheme was placed on a statutory footing in the Bank of England Act 1998, with effect from 1 June 1998. The scheme was reviewed in 2003 and 2008. As part of the CRD scheme review in 2008 the Government made a commitment to conduct a further formal review at the latest in five years’ time. This consultation document sets out the conclusions of that review. The conclusions affect eligible cash ratio deposit paying institutions throughout the UK.
The purpose of this consultation is to enable any interested parties to make representations about the recommendations of the review, including:
- the proposal to increase the CRD from 0.11 per cent to 0.18 per cent
- the proposal to raise the deposit threshold from £500 million to £600 million
- whether there are any technical aspects of the operation of the scheme that could be improved
Head of Delivery Branch
Debt and Reserves Management Team
1 Horse Guards Road
Published: 18 February 2013
From: HM Treasury