The Bank of Canada today welcomed the move by a number of Canadian banks, including the six largest, to draw on its new Standing Term Liquidity Facility (STLF).

“It is good to see Canada’s banks using this new standing facility,” Bank of Canada Governor Stephen S. Poloz said. “It was designed to be used, and their participation shows that this facility is a helpful addition to our liquidity tool kit. I encourage all eligible Canadian banks to access the STLF to maintain the flow of credit to Canadian households and businesses.”

The Canadian Bankers Association issued a statement saying that nine banks, including Canada’s six largest, had all accessed the STLF.

Under the STLF, eligible financial institutions can borrow from the Bank of Canada by pledging a broad set of collateral, including mortgages. This improves their ability to fund new lending. The STLF is one of several facilities the Bank of Canada has put in place to address potential liquidity issues.  

The Bank of Canada is acting in several ways to support the economy and financial system. The Bank of Canada stands ready to take any and all actions we can to protect the well-being of Canadians during this difficult time.