Bank of Canada welcomes initiatives to support the functioning of financial markets in Canada

The Bank of Canada welcomes the initiatives announced today to support the asset-backed commercial paper market in Canada. The agreement announced this morning by major investors and liquidity providers to pursue an orderly restructuring of the Canadian market for structured finance asset-backed commercial paper (third party ABCP) provides an opportunity for parties to work through the many complex issues related to the market for asset-backed commercial paper. The commitment by institutions to take actions in support of an orderly resolution is very helpful. The Bank also welcomes the confirmation by Canada's major chartered banks that they are supporting their own bank-sponsored asset-backed commercial paper programs. Together, these initiatives should help support the functioning of financial markets in Canada.