Bank of Canada announces changes to eligibility requirements of Term ABS in the Bank of Canada’s Standing Liquidity Facility Collateral Policy

The Bank of Canada continually reviews its collateral policy for the Standing Liquidity Facility (SLF) and its term repo operations. As a result, the Bank is announcing that effective immediately the eligibility requirements for term asset-backed securities (Term ABS), which include residential mortgage backed securities (RMBS), will be expanded to include those issued by offering memorandum in addition to those issued by prospectus. 

For Term ABS that are issued by offering memorandum, at a minimum, the relevant investment information to be disclosed should be aligned with those issued under prospectus. All other Term ABS  eligibility requirements remain in effect, including the exclusion of Term ABS backed by commercial mortgages. In turn, Term ABS issued by offering memorandum will be eligible for the Bank’s term repo operations and Standing Term Liquidity Facility (STLF).

The Bank of Canada continues to closely monitor global and domestic market developments and remains committed to providing all the liquidity the financial system needs so that it can continue to serve Canadians.

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

Lorie Zorn
Director
Financial Markets Department
Bank of Canada
403-956-4532

Media Relations
Bank of Canada
613-782-8782