On 24 May 2018, there was published on the legislation.gov.uk website The Cash Ratio Deposits (Value Bands and Ratios) Order 2018. The Order amends the ratio used for calculating the percentage of eligible liabilities that eligible financial institutions are required to deposit in a non-interest bearing account at the Bank of England (BoE) under the cash ratio deposit (CRD) scheme. The CRD scheme funds the BoE’s monetary policy and financial stability functions.

The Order amends the CRD scheme to provide that the ratio for institutions whose eligible liabilities are more than £600 million will be calculated every six months by applying the formula contained in the Order. The Order comes into force on 1 June 2018.