Bank of Canada Announces Changes to Term Repo Operations and Bankers’ Acceptance Purchase Facility

With substantial improvements in short-term funding conditions recently, as well as reduced participation since mid-April in the Bank’s extended Term Repo and Bankers’ Acceptance Purchase Facility (BAPF) operations, the Bank is making amendments to these programs.

Effective June 16, 2020, the Bank will reduce the frequency of its Term Repo operations from twice to once per week. Correspondingly, the number of maturity points per week will be reduced from four to two, with the Bank continuing to offer repo operations out to two years. In addition, it will remove all LVTS members’ bankers’ acceptances or bearer deposit notes (including own-name) from the list of eligible securities effective immediately. Own-name covered bonds, Term ABS, and ABCP will remain eligible.

Effective July 6, 2020, the Bank will reduce the frequency of its BAPF operations from weekly to bi-weekly. Accordingly, the subsequent BAPF operation will be held on July 20, 2020. All other BAPF parameters (size and pricing) remain the same.

The Bank recognizes the importance of maintaining these facilities as backstops given ongoing uncertainty, and as such is committed to continuing them at this frequency until the end of October 2020. At that time, the Bank will reassess market conditions and evaluate the continued need for the BAPF and the extended term repo facilities.

The Bank will continue to monitor funding conditions, and if warranted, will adjust its Term Repo and BAPF operations.

The Bank remains committed to providing liquidity as required to support the functioning of the Canadian financial system.


Director
Financial Markets Department
Bank of Canada
613-782-7245


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


Bank of Canada
613-782-8782