Banks in UK could swap $175b assets

London: Britain's banks are set to swap between 80 billion and 90 billion pounds ($175 billion) of mortgage-backed assets for Treasury bills, nearly twice the base level set by the Bank of England last month, the Financial Times reported on Fridays.

The British Bankers' Association said details were confidential, but a spokes-man said "it wouldn't be surprising" if banks were accessing more funds as there were still strains in the market. "All banks are planning to use this facility," a source said. "The reports in the market at the time were that it would be £50 billion to £100 billion, so this doesn't feel unexpected."

The FT said banks had approached rating agencies about how to structure deals that will receive the necessary triple-A rating.