Even more nuclear, we mean. But not really, since this means the bank will now be accepting even broader forms of collateral than ever before as part of a sweeping reform of its permanent cash-lending operations. A look at the details of the Brits’ latest derring-do.

The Bank of England on Thursday unveiled a wide-ranging reform of its permanent cash-lending operations in a bid to create a framework that can handle a range of liquidity conditions.

The new framework, which will permanently widen the amount of collateral the central bank will accept, is designed to create greater long-term certainty for banks that are managing their liquidity needs.

"These arrangements set out our liquidity provision in a systematic way to help banks plan their access to central bank liquidity and so add certainty," said BOE Governor Mervyn King.

On Monday, the BOE will introduce a new overnight standing lending facility, which is designed to be used by banks when they encounter technical problems, such as settlement delays, and removes the stigma of using it.

It will also launch a new discount window facility that replaces its temporary Special Liquidity Scheme and allows banks to swap illiquid assets for U.K. government bonds, or gilts, usually for a 30-day period.

New lending through the bank's SLS will be possible through January as previously planned.

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