Operational details on the Bank of Canada’s Bankers' Acceptance Purchase Facility
As previously announced, the Bank of Canada (Bank) will conduct secondary market purchases of one-month Bankers’ Acceptances issued and guaranteed by any Canadian bank and of sufficiently high quality, broadly equivalent to a minimum short-term credit rating of R-1 (low), under the Bankers’ Acceptance Purchase Facility (BAPF).
The first BAPF operation will be conducted on Monday, March 23, 2020. For the first operation, the Bank will purchase up to $10 billion of one-month Bankers’ Acceptances with a reserve rate of the overnight index swap (OIS) rate plus 20 basis points (bps). The market level for one-month OIS plus 20 bps will be published as a market notice the morning of the operation. The eligible maturity range for the first operation will include Bankers’ Acceptances that mature between April 20, 2020 and May 4, 2020.
Going forward, the final purchase amount, reserve rate and eligible maturity range will be published as market notices prior to each operation. BAPF operations will be conducted weekly with the purchase amount and reserve rate being adjusted to reflect market conditions. Additional operational details can be found in the Terms and Conditions.
The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the functioning of the Canadian financial system.
Mark de Guzman
Director
Financial Markets Department
Bank of Canada
613 782-7245
Scott Kinnear
Director
Financial Markets Department
Bank of Canada
613 782-7723
Media Relations
Bank of Canada
613 782-8782