As overall financial market conditions continue to improve in Canada, use of the Bank of Canada’s programs that were introduced in 2020 in response to the shock from COVID-19 to support the functioning of key Canadian financial markets, has declined significantly.
As overall financial market conditions continue to improve in Canada, usage in several of the Bank of Canada’s programs that support the functioning of key financial markets has declined significantly.
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.
Following the announcement of the Bank of Canada’s new market operations to improve market functioning to support its monetary policy actions, the Term Repo terms and conditions have been revised to include term repos up to 24 months.
A further expansion of eligible collateral for Term Repo operations, in addition to the changes previously announced by the Bank on March 16th and March 18th, are being made effective immediately.
The Bank is announcing four measures today designed to support market functioning given the rapidly evolving uncertainty around the impact of COVID-19.
The Bank of Canada (Bank) is committed to supporting the efficient and continuous functioning of financial markets during the current period of uncertainty in which conditions are evolving rapidly.
In order to support the continuous functioning of financial markets through the provision of liquidity, the Bank of Canada announced two measures today.