Notes for Tables - Bank of Canada: Assets and Liabilities

Bank of Canada assets and liabilities: Month-end (formerly B1)

Source: Bank of Canada

Bank of Canada assets and liabilities: Month-end (formerly B1) was previously named Bank of Canada: Monthly series (B1).

The Bank of Canada commenced operations in March 1935 under the terms of the Bank of Canada Act of 1934. Data for the month-end series (Bank of Canada assets and liabilities: Month-end (formerly B1)) are available from the commencement of operations and for the Wednesday series (Bank of Canada assets and liabilities: Weekly (formerly B2)), from 1954. The statement of assets and liabilities presented in the tables follows in general the form presented in the Bank of Canada Act. In compliance with the 1991 Bank Act, the statutory requirement on chartered banks to hold reserves against certain of their deposit liabilities was reduced to zero in July 1994. Positions of members of Payments Canada with the Bank of Canada (formally B3) presents information consistent with the new framework for monetary policy implementation in the period after the inception of the Large Value Transfer System on 4 February 1999.

The Bank of Canada transitioned to reporting under International Financial Reporting Standards (IFRS) effective 1 January 2011.

Payments Canada was formerly known as the Canadian Payments.

Government of Canada direct and guaranteed securities held by the Bank are purchased in the open market from investment dealers and chartered banks, or directly from the Receiver General for Canada. Prior to 10 November 1999, this category includes the amount of securities held under purchase and resale agreements (PRAs).

Advances to members of Payments Canada. Prior to 1 December 1980, these were made only to chartered banks and Quebec savings banks.

Other investments consist mainly of holdings of U.S. dollar-denominated securities.

All other assets consist principally of Bank premises and equipment. Beginning 10 November 1999, this category includes the amount of securities held under purchase and resale agreements (PRAs). Prior to that date, the amount of securities held under purchase and resale agreements is included in Government of Canada direct and guaranteed securities. This category also includes other bills, advances to the Government of Canada, and investment in the IDB.

Purchase and resale agreements (PRAs) are arrangements whereby the Bank of Canada provides temporary accommodation to certain money market participants through the purchase of Government of Canada securities with a commitment to resell them at a later date.

Notes in circulation include notes held by the chartered banks and by the general public. The total includes a small amount of notes issued by governments and banks before the Bank of Canada became the sole issuer of notes in circulation in Canada and took over the liability for these early notes from their original issuers.

Canadian dollar deposits of the Government of Canada. This is the deposit account used by the Receiver General for Canada for current requirements. Receipts and disbursements made by the Bank of Canada in performing its fiscal agency functions for the government are handled through this account. The Receiver General for Canada also maintains deposit accounts with the participants in the Large Value Transfer System and the direct clearers of Payments Canada.

Other Canadian dollar deposits include privately owned balances transferred by the chartered and savings banks because they have been unclaimed for 10 years. Prior to February 1983 this item also included deposits of the Quebec savings banks.

Foreign currency liabilities include balances maintained by the federal government and by other central banks.

All other liabilities include the net revenue of the Bank of Canada payable to the Receiver General for Canada and the total of the paid-up capital ($5 million), and the rest fund ($25 million). At 31 December 1955, the rest fund had reached the maximum permitted under the Bank of Canada Act of five times the paid-up capital. Since then, all of the net revenue has been remitted to the Receiver General for Canada. Effective 1 January 2010, based on an agreement with the Minister of Finance, the Bank will deduct from its remittances an amount equal to unrealized losses on available-for-sale assets. Also included is accrued postretirement and post-employment benefit liabilities.

Bank of Canada assets and liabilities: Weekly (formerly B2)

Source: Bank of Canada

The Bank of Canada commenced operations in March 1935 under the terms of the Bank of Canada Act of 1934. Data for the month-end series (Bank of Canada assets and liabilities: Month-end (formerly B1)) are available from the commencement of operations and for the Wednesday series (Bank of Canada assets and liabilities: Weekly (formerly B2)), from 1954. The statement of assets and liabilities presented in the tables follows in general the form presented in the Bank of Canada Act. In compliance with the 1991 Bank Act, the statutory requirement on chartered banks to hold reserves against certain of their deposit liabilities was reduced to zero in July 1994. Positions of members of Payments Canada with the Bank of Canada (formally B3) presents information consistent with the new framework for monetary policy implementation in the period after the inception of the Large Value Transfer System on 4 February 1999.

The Bank of Canada transitioned to reporting under International Financial Reporting Standards (IFRS) effective 1 January 2011.

Payments Canada was formerly known as the Canadian Payments Association.

Government of Canada direct and guaranteed securities held by the Bank are purchased in the open market from investment dealers and chartered banks, or directly from the Receiver General for Canada. Prior to 10 November 1999, this category includes the amount of securities held under purchase and resale agreements (PRAs).

Advances to members of Payments Canada. Prior to 1 December 1980, these were made only to chartered banks and Quebec savings banks.

All other assets consist principally of Bank premises and equipment. Beginning 10 November 1999, this category includes the amount of securities held under purchase and resale agreements (PRAs). Prior to that date, the amount of securities held under purchase and resale agreements is included in Government of Canada direct and guaranteed securities. In Bank of Canada assets and liabilities: Weekly (formerly B2), for the period prior to 16 July 1986, all other assets also include cheques on other banks, Government of Canada items in transit (net) and accrued interest on investments. This category also includes other bills, advances to the Government of Canada, and investment in the IDB.

Purchase and resale agreements (PRAs) are arrangements whereby the Bank of Canada provides temporary accommodation to certain money market participants through the purchase of Government of Canada securities with a commitment to resell them at a later date.

Notes in circulation include notes held by the chartered banks and by the general public. The total includes a small amount of notes issued by governments and banks before the Bank of Canada became the sole issuer of notes in circulation in Canada and took over the liability for these early notes from their original issuers.

Canadian dollar deposits of the Government of Canada. This is the deposit account used by the Receiver General for Canada for current requirements. Receipts and disbursements made by the Bank of Canada in performing its fiscal agency functions for the government are handled through this account. The Receiver General for Canada also maintains deposit accounts with the participants in the Large Value Transfer System and the direct clearers of Payments Canada.

Positions of members of Payments Canada with the Bank of Canada (formerly B3)

Source: Bank of Canada

Positions of members of Payments Canada with the Bank of Canada (formerly B3) was previously named Bank of Canada: Monthly and weekly series (B3).

The Bank of Canada commenced operations in March 1935 under the terms of the Bank of Canada Act of 1934. Data for the month-end series (Bank of Canada assets and liabilities: Month-end (formerly B1)) are available from the commencement of operations and for the Wednesday series (Bank of Canada assets and liabilities: Weekly (formerly B2)), from 1954. The statement of assets and liabilities presented in the tables follows in general the form presented in the Bank of Canada Act. In compliance with the 1991 Bank Act, the statutory requirement on chartered banks to hold reserves against certain of their deposit liabilities was reduced to zero in July 1994. Positions of members of Payments Canada with the Bank of Canada (formally B3) presents information consistent with the new framework for monetary policy implementation in the period after the inception of the Large Value Transfer System on 4 February 1999.

The Bank of Canada transitioned to reporting under International Financial Reporting Standards (IFRS) effective 1 January 2011.

Payments Canada was formerly known as the Canadian Payments Association.

Positions of members of Payments Canada with the Bank of Canada (formally B3) contains data pertaining to the Large Value Transfer System (LVTS). All data are reported as weekly and monthly totals, with the number of business days on which transactions occurred during the period reported.

Reflecting the change to next-day settlement of payments in the Automated Clearing Settlement System (ACSS), which was effective November 2003, end-of-day overdraft and long positions for this clearing and settlement system no longer exist. See Technical Note: Elimination of Retroactive Settlement in the ACSS in the Autumn 2003 issue of the Bank of Canada Review.

Overdraft loans are the amounts needed to cover deficits at the end of the day in the LVTS. Interest is charged on such overdraft loans at the Bank Rate, which is the upper limit of the Bank of Canada’s Operating Band.

Overdraft loans are the amounts lent to LVTS participants by the Bank of Canada to cover deficits at the end of the day arising from the operation of the LVTS and any other loans to members of Payments Canada by the Bank of Canada. Interest on overnight loans to LVTS participants is charged at the Bank Rate, which is the upper limit of the Bank of Canada’s operating band. Interest on any other loans is charged at a rate set by the Bank of Canada, which is typically the Bank Rate.

Positive balances are the end-of-day balances in the LVTS. The interest rate paid by the Bank of Canada on positive balances after settlement of the LVTS is set at the lower limit of the operating band.

Special deposit accounts (SDAs) are balances placed on deposit at the Bank of Canada as collateral for LVTS intraday liquidity and overdraft loans. The interest rate paid on SDAs is set at the Bank’s target for the overnight rate less 7 basis points.

Bank of Canada note liabilities (formerly K1)

Source: Bank of Canada

Total Bank of Canada note liabilities include notes issued by chartered banks, Dominion of Canada, provinces and defunct banks. These are note issues that are in the process of being retired, and liability for them has been taken over by the Bank of Canada from the original issuers.