delete The Cash Ratio Deposits (Eligible Liabilities) (Amendment) Order 2005
Amends the Cash Ratio Deposits (Eligible Liabilities) Order 1998 by: (1) updating paragraph references in articles 3 and 7(2) from 'paragraphs 8 to 13' to 'paragraphs 9 to 13'; (2) adding an exception for deposits made by the Bank of England to the Schedule's paragraph 1; and (3) deleting paragraphs 6 and 8 from the Schedule. The Order came into force on 1st March 2006.
Cash ratio deposit requirements compel banks to hold non-market-rate deposits at the Bank of England, acting as an implicit tax on banking operations that is passed to consumers through higher costs or lower returns. While this amendment merely adjusts references and narrows scope by deleting paragraphs, the underlying mandatory cash ratio mechanism itself distorts market incentives, reduces bank lending capacity, and provides no benefit that competitive markets could not achieve more efficiently. The regulation represents the kind of regulatory compulsion that inflates costs in the financial sector and contributes to the UK's competitiveness gap with London, New York, Singapore, and Dubai.