The central bank had introduced a cheap lending facility as a part of its Covid policy response.“It achieved a key objective of providing banks with three-year low-cost funding and was available for drawdown until 30 June 2021.”“However, our confidence intervals are wide and there are significant identification challenges involved in disentangling the effects of the TFF from the effects of pandemic-related disruptions and other policy interventions on credit supply and demand.
“Nonetheless, the TFF provided an assured source of funding at a time of considerable stress in the financial system and lowered banks’ funding costs, and any effects on business lending via these channels may not be fully reflected in our results.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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