Northern Rock has borrowed another £2bn from the Bank of England in the past week, bringing the total credit made available to the bank close to £23bn. Financial Times, The Times, Daily Telegraph, Independent, Guardian
Since the Bank will lend only at a penalty rate of more than 6.75%, it is likely that an ‘invisible’ run on Northern Rock deposits has continued even though the queues outside branches have gone and the government has guaranteed wholesale and retail accounts.
At the end of June, Northern Rock had retail deposits of £24bn and other deposits of £6bn.
Shares in Northern Rock fell 12.5p, to 172p.