U.K. Banks Want More Liquidity Help From BoE, Telegraph Says

By David Altaner

July 11 (Bloomberg) -- U.K. banking officials will meet today with the Bank of England to seek broader terms for a liquidity funding plan that was started in April, the Daily Telegraph reported, citing people familiar with the matter.

The bankers will say that the Special Liquidity Scheme hasn't brought down Libor, the lending rate between banks, or mortgage rates, the newspaper said.

The plan accepts triple A-rated securitized bonds backed by mortgages and credit-card debt and the underlying business must have been transacted by the end of last December, the Telegraph said.

Some bankers may press for the plan to include mortgages written this year, the newspaper said, adding that it started at 50 billion pounds ($99 billion) and may need to go to 100 billion pounds. The Bank wouldn't comment, the Telegraph said.

To contact the reporter on this story: David Altaner in London at daltaner@bloomberg.net