Reserve Bank outlines details of revised Term Lending Facility

The Reserve Bank has today outlined the revised details of the Term Lending Facility (TLF), which will be available to banks from later this month. The key change is that the lending term has been extended to five years from three years. The revised facility now runs through to end on 1 February 2021.

The changes have been made in conjunction with the Government’s review of the Business Finance Guarantee Scheme (BFGS).

The TLF is available to support the Government’s BFGS by providing banks access to long-term funding at a low interest rate. From 26 August, the Reserve Bank will offer to lend funds on the new terms to banks through this facility, with access to funds linked to each banks’ lending under the BFGS.

The TLF provides funding to banks at the Official Cash Rate. The facility requires approved eligible collateral to be pledged in a similar manner to the Reserve Bank's Open Market Operation (OMO). These details can be found on the Reserve Bank's Domestic Markets webpages.

The Reserve Bank will make this facility available for eligible counterparties to use on the 18th to 20th business day (inclusive) of each month, for a further six months. The schedule below shows the revised TLF programme dates from 26 August to 1 February 2021.

The Reserve Bank reserves the right to alter the number of offerings, date, time, and settlement of the facility at its discretion.

TLF Schedule (dates are inclusive)

Offering 10.00am-12.00pm and 1.00pm-3.00pm  
26 August 2020 – 28 August 2020
24 September 2020 – 28 September 2020
27 October 2020 – 29 October 2020
25 November 2020 – 27 November 2020
23 December 2020 – 30 December 20201
28 January 2021 – 1 February 2021


1 December dates have been adjusted to take account of the Christmas period. The 24 December window will only be available from 10am to 12pm.

For further information contact:

Dean Hill
Senior Manager, Financial Markets
Email: [email protected]

Media contact:

Patrick O'Meara
Senior Adviser, External Stakeholders
MOB: 021 198 4227
Email: Patrick.O'[email protected]