HM Treasury News Release
149/97                                       25 November 1997
_______________________________________________________________

                                
     CASH RATIO DEPOSITS: CONSULTATION DOCUMENT PUBLISHED
                                
A consultation document on cash ratio deposits (CRDs), from
which the Bank of England derives part of its income, was
published today by the Treasury.

Banks currently place non-interest bearing CRDs at the Bank on
a voluntary basis. As part of the reforms introduced by the
Bank of England Bill, it is proposed to place the scheme on a
statutory basis. This is designed to improve transparency and
accountability.

The document explains the rationale for the scheme and its
institutional coverage. It also sets out proposals on the
definition of eligible liabilities - which forms the basis on
which CRDs are calculated - and the distribution of CRDs.

The CRD scheme is proposed in Clause 6 and Schedule 2 of the
Bank of England Bill. The consultation process is required
under paragraph 10 of Schedule 2 of the Bill and will inform
the final decisions on the scheme.

Comments are invited by 30 January 1998.

The Bank of England Bill is currently going through its
Committee Stage in the House of Commons.



NOTES TO EDITORS

1.   Media copies of the consultation document can be obtained
from the Treasury Press Office on 0171 270 5185

2.   Non-media copies can be obtained from the Public Enquiry
Unit on 0171 270 4860/4558.

3.   If you have access to the Internet, you can find this
release at http://www.hm-treasury.gov.uk. Material on other
Treasury matters can also be found at this address.