Funds management

We manage the Government of Canada’s bank accounts, conduct auctions of government securities and provide other financial services to the government.

We also manage our balance sheet and oversee the clearing, payment and settlement systems that support Canada’s financial system. Our funds management function helps ensure Canada’s financial system operates smoothly and is stable and efficient.

Managing the Government’s funds and debt

The Bank of Canada provides a range of banking and investment services to the Government of Canada, including:

• Overseeing the accounts of Canada’s Receiver General, through which almost all money collected and spent by the Government flows.
• Managing Canada’s public debt programs, including selling treasury bills and bonds at auction or other securities through syndication.
• Ensuring the Government’s accounts hold enough cash to meet its daily needs.
• Investing Government funds in term deposits.
• Overseeing Canada’s foreign exchange reserves.

Government securities auctions

We sell the government securities at auction. The primary purpose of these auctions is to meet the government’s funding needs and distribute securities to a wide range of investors. We auction various types of securities, including treasury bills and marketable bonds, using a transparent and competitive bidding process.

Government debt management

We provide policy advice to the federal government on the management of its debt, including treasury bills and bonds. We also manage the government’s portfolio of Canadia Mortgage Bonds.

Foreign exchange reserves

We oversee Canada’s foreign exchange reserves. These reserves provide liquidity for the government and help assure the stability of the Canadian dollar. On very rare occasions, we may directly intervene in the market to counter extreme volatility in the Canadian dollar.

Crown corporations

We provide banking services, including cash and securities accounts denominated in Canadian dollars, to certain federal Crown corporations.

Providing services to financial market infrastructures

We provide payment, settlement and collateral management services to designated financial market infrastructures (FMIs), which reduces systemic risk in the financial system. We are also responsible for the regulatory oversight of designated FMIs and certain prominent payment systems that play an essential role in the Canadian economy.

Support for payment system participants

We provide select banking services, including settlement accounts and collateral services, to direct participants in Canada’s designated high-value payment systems. This helps us implement our monetary policy and support domestic financial stability.

Providing services to other central banks

We offer Canadian-dollar banking and securities safekeeping services to other central banks and official international financial organizations. We also provide limited gold safekeeping services.

Managing our own portfolio

We manage the investments and liabilities that are reported on our own balance sheet. We also manage the investments held by the Bank’s pension fund. These investments are held and maintained in a pension trust separate from the Bank.

Balance sheet management

We manage our balance sheet, the size and composition of which reflect the unique role we play as Canada’s central bank.

In normal times, we buy assets to offset the demand for bank notes from households and businesses. We also buy assets to offset the deposits we hold for the Government of Canada. In exceptional circumstances, such as an economic or financial crisis, we may change the size and composition of our balance sheet to meet our monetary policy or financial stability goals.

Strategies employed

Managing our portfolio involves the careful selection of investments to balance risk and return. We use strategies such as diversification and risk management to safeguard our assets.

Find out more

Our funds management function is integral to supporting the stability and efficiency of the financial system. It is one of the ways we achieve our objective to promote the economic and financial well-being of Canadians.