This Order may be cited as the Cash Ratio Deposits (Value Bands and Ratios) Order 1998 and shall come into force on 1st June 1998.

For the purposes of paragraph 4 of Schedule 2 to the Bank of England Act 1998, the value bands and the ratios applicable to them, expressed as a percentage, are as follows:

Jim Dowd

Graham Allen

Two of the Lords Commissioners of Her Majesty's Treasury

19th May 1998

Schedule 2 to the Bank of England Act 1998 makes provision concerning the maintenance by certain institutions of cash ratio deposits with the Bank of England (“the Bank”). Institutions which are covered by these arrangements are those authorised under the Banking Act 1987, certain European authorised institutions which have lawfully established branches in the United Kingdom for the purpose of accepting deposits, and building societies authorised under the Building Societies Act 1986. The bank is enabled to give an institution a written call notice specifying the amount of cash ration deposit it is expected to have on deposit with the Bank during a specified period. This depositable amount is to be calculated by multiplying so much of an institution's liability base as falls into different value bands by the ratios applicable to those bands.

This Order specifies the value bands and the ratios applicable to them.

A regulatory appraisal of the cash ratio regime by the Bank of England Act 1998 and orders made under it, including a compliance cost assessment of the effect of the regime on costs to business, is available from the Public Enquiry Unit, Room 89/2, H M Treasury, Parliament Street, London SW1P 3AG.