The Bank of Canada is committed to supporting the efficient and continued functioning of financial markets during the current period of uncertainty and rapidly changing conditions.

To this end, the Bank announces that it will expand the eligible collateral for its Term Repo Facility to include the full range of eligible collateral under the Standing Liquidity Facility, except for the non-mortgage portfolio. . Further operational details, including the effective date, will follow. To see the complete list of SLF guarantees. This expansion of eligible collateral will support financial institutions’ funding conditions by providing a safety net to regular private funding.

The Bank also announces that it stands ready to proactively support the Canada Mortgage Bonds (CMB) market so that this important funding market continues to function well. This would include, where appropriate, purchases of CMB on the secondary market. This is similar in spirit to the increase in Government of Canada bond buybacks which was announced last week to support market liquidity and price discovery. Further operational details, including the effective date, will follow.

The Bank has also taken other steps to ensure that the Canadian financial system has sufficient liquidity. These additional measures were announced in separate notices on the Bank’s website.

The Bank of Canada is taking concerted action to support the Canadian economy during this difficult economic time. Our measures will help ensure that financial institutions can continue to provide credit to households and businesses.

The Bank continues to closely monitor developments in global markets and remains committed to providing the liquidity needed to support the functioning of the Canadian financial system.

Contacts for market players:

Marc de Guzman
Director, Financial Markets Department, Bank of Canada
613 782-7245

Scott Kinner
Director, Financial Markets Department, Bank of Canada
613 782-7723

Media contact:

Media Relations
Bank of Canada
613 782-8782