British Banks Increase Pledging of Higher-Risk Assets for Bank of England Cash

British commercial banks are increasingly using higher-risk assets, such as loans tied to high-interest store cards and vehicle leases, as collateral to obtain cash from the Bank of England's Indexed Long-Term Repo (ILTR) facility. This trend is an intended consequence of the BoE's quantitative easing reversal, which aims to inject cash into the financial system, but also exposes the central bank to potentially illiquid assets.