The British Bankers' Association (BBA) has suggested a review of the recently revised money market framework and the move towards principles-based regulation.
It highlighted three issues with the revised monetary framework:
whether the standing facility and deposit rates are set at an appropriate level. The BBA said it had argued for a much narrower corridor, of 25 or 50 basis points rather than 100 around the base rate;
eligible collateral, specifically whether certificates of deposit and