The Bank of Canada has published three documents today:

  1. An overview note which provides the general context for the Bank’s reviews of its framework for financial market operations and its emergency lending policies;
  2. consultation paper discussing a range of possible changes to the Bank’s framework for financial market operations; and,
  3. consultation paper proposing changes to the Bank’s Emergency Lending Assistance (ELA) policies to individual financial institutions and Financial Market Infrastructures.

The consultation papers propose several changes in these areas that:

  • reflect lessons learned globally from the financial crisis;
  • support and take account of recent regulatory reforms;
  • take account of changes in the ways financial institutions manage their liquidity needs;
  • respond to changing dynamics in funding and government debt markets;
  • take account of ongoing changes to the external environment; and,
  • help the Bank manage the likely future growth in the stock of bank notes in circulation and hence in the size of the Bank of Canada’s own balance sheet.

Comments are being sought from interested stakeholders by 4 July 2015. Comments on the proposed changes to the Bank’s framework for financial market operations can be e-mailed to operations-consultation@bank-banque-canada.ca. Comments on the proposed changes to the Bank’s ELA policies can be e-mailed to ELA-consultation@bank-banque-canada.ca.

For further information on the framework for financial market operations consultation, please contact:

Ron Allenby
Assistant Director
Financial Markets Department
Bank of Canada
613 782-8046

For further information on the ELA policies consultation, please contact:

Alexandra Lai
Assistant Chief
Regulatory Policies Division
Bank of Canada
613 782-7667

Media Relations
Bank of Canada
613 782-8782