December 21, 2011
Revision:	December 20, 2012
	October 31, 2013
	February 18, 2014

1. Purpose

(1)

These Terms and Conditions prescribe the principles for the Bank of Japan's pound sterling (GBP) funds-supplying operations against pooled collateral (GBP denominated loans that are made against pooled eligible collateral by way of open market operations) introduced with the aim of further facilitating money market operations and ensuring the smooth functioning and stability of financial markets in view of recent liquidity pressures in the international financial markets and the possible impact of those on liquidity conditions in the yen money market.

(2)

Loans pursuant to these terms and conditions may be executed for the time being.

2. Location of Operations

At the Head Office (International Department) of the Bank.

3. Eligible Counterparties

Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from institutions satisfying one of the eligibility criteria listed below; however, the Resolution and Collection Corporation, bridge banks (as defined in Article 2, Paragraph 13 of the Deposit Insurance Act [Act No. 34, 1971]), and specified bridge financial institutions (as defined in Article 126-34, Paragraph 3, Clause 5 of the Act) shall be excluded from these institutions.

(1)	financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Act [Act No. 89, 1997])
(2)	financial instruments firms (as defined in Article 10, Paragraph 1, Clause 2 of the Order for Enforcement of the Bank of Japan Act [Order No. 385, 1997]) that conduct the type I financial instruments business (as defined in Article 28, Paragraph 1 of the Financial Instruments and Exchange Act [Act No. 25, 1948])
(3)	securities finance companies (as defined in Article 10, Paragraph 1, Clause 3 of the Order)
(4)	tanshi companies (as defined in Article 10, Paragraph 1, Clause 4 of the Order)

4. Form of Loans

Loans shall be provided in the form of electronic lending.

5. Duration of Loans

Taking account of conditions in financial markets, the Bank shall determine the duration of each loan and the duration shall not exceed three months.

6. Loan Rates and Collection of Interest

(1) Interest rates on the loans

Interest rates on the loans shall be set by the Bank of England (BOE).

(2) Collection of interest

The interest on a loan shall be calculated based on the rate determined by the method described in (1) for the number of days from the first day after the disbursement of the loan up to the maturity date, and the interest shall be collected after the loan reaches maturity.

7. Date of Loan Disbursement, Amount of Loans, etc.

Taking account of conditions in financial markets, the Bank shall determine specifications necessary for lending, including the date of loan disbursement, the amount, and the counterparties for each loan.

8. Collateral

(1)	The Bank shall accept eligible collateral from counterparties in advance.
(2)	"Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000) and "Collateral Guidelines on Eligible Foreign Bonds" (Policy Board Decision on May 22, 2009) shall apply to the collateral for the loans.
(3)	The yen denominated amount for which the counterparty shall pledge eligible collateral shall be obtained by multiplying a yen-denominated loan value based on the GBP/yen spot exchange rate prevailing in the market by 1.16 for the loan with a duration of up to one month and by 1.22 for the loan with a duration of more than one month and up to three months respectively.

9. Settlement

The payment and receipt of GBP between the Bank and the counterparties shall be made through the accounts at the BOE which each party shall specify in advance.

Supplementary Provision

These terms and conditions shall become effective today.