On 21 April 2008, the Bank of England released details of a £50 billion scheme under which banks and building societies may swap certain illiquid assets (asset-backed securities) for UK Treasury bills that they can use to raise funds in the inter-bank market. The aim is to improve liquidity in the banking system and to increase confidence in financial markets.

Details of the scheme will be of interest to those advising banks and building societies on the scheme and to those following the credit crunch and liquidity squeeze more generally.