The Bank of England (BOE) has announced that it will keep the identities of any pension funds, insurers, or hedge funds utilizing its new financial stability tool confidential, in an effort to prevent negative stigma that could hinder rescue operations during financial crises. This new facility, known as the Contingent NBFI Repo Facility (CNRF), is designed to provide liquidity support to the gilt market, which is crucial for the UK financial system. The official launch has been postponed until early 2025, and the facility will be activated only during times of significant market distress. BOE Deputy Governor Dave Ramsden emphasized the importance of this approach to mitigate stigma, reflecting lessons learned from past financial crises.
