Bank of England Term Funding Scheme (TFS) 2016

Glossary

Banking

Bank of England Term Funding Scheme (TFS) 2016

The Term Funding Scheme (TFS) was part of a comprehensive package of easing measures announced by the Bank of England’s Monetary Policy Committee in August 2016. The aim of the package was to provide additional support to growth and achieve a sustainable return of inflation to the 2% target in the period immediately after the Brexit vote. Under the TFS, participating banks and building societies were able to borrow funds on a collateralised basis from the Bank of England at a rate close to Bank Rate for up to four years. The Scheme and its predecessor, the FLS closed to new lending in February 2018.

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