Bank of Canada launches the Standing Term Liquidity Facility
The Bank of Canada (the Bank) is announcing the launch of its new liquidity facility, the Standing Term Liquidity Facility (STLF), effective March 30, 2020. Information on the Bank’s lending policy and terms and conditions for STLF advances can be found on the Bank’s website as part of the Framework for Market Operations and Liquidity Provision. In a previous market notice, released November 13, 2019, the Bank announced its intention to introduce the STLF.
The STLF complements the Bank’s current tools for the provision of liquidity and will strengthen the Bank’s efforts to enhance the resilience of the Canadian financial system. Under the STLF, the Bank can provide loans to eligible financial institutions in need of temporary liquidity support and where the Bank has no concerns about their financial soundness.
The final design of the STLF reflects feedback obtained during targeted industry consultations.
Eligible counterparties interested in making appropriate legal arrangements with the Bank of Canada can send an email to legaldocuments@bankofcanada.ca.
For further information, please contact:
Scott Kinnear
Director
Financial Markets Department
Bank of Canada
613-782-7723
Natasha Khan
Director
Financial Stability Department
Bank of Canada
613-782-7971
Media Relations
Bank of Canada
613-782-8782