How foreign central banks can affect liquidity in the Government of Canada bond market Staff Analytical Note 2024-26 Patrick Aldridge, Jabir Sandhu, Sofia Tchamova We find that foreign central banks own a large share of Government of Canada (GoC) bonds and tend to hold their positions for longer than other types of asset managers. This buy-and-hold behaviour could offer benefits. For example, foreign central banks may be less likely than other asset managers to sell bonds and add to strains on market liquidity in periods of turmoil. However, foreign central banks’ buy-and-hold behaviour combined with their minimal lending of GoC bonds in securities-financing markets, as observed in our available data, can potentially lower liquidity because fewer GoC bonds are available for others to transact in secondary markets. Indeed, we find that higher levels of foreign central banks’ GoC bond holdings are related to lower liquidity. Content Type(s): Staff research, Staff analytical notes Topic(s): Exchange rates, Financial institutions, Financial markets, Financial stability, Foreign reserves management, International financial markets, Market structure and pricing JEL Code(s): E, E5, E58, F, F3, F30, F31, G, G0, G01, G1, G11, G12, G15, G2, G23
December 12, 2024 Bank of Canada Media Interview – 98,5 FM Nicolas Vincent, Deputy Governor of the Bank of Canada, will give an interview on 98,5 FM’s show Lagacé le matin. Content Type(s): Press, Media advisories
December 12, 2024 Retail payments supervision: Supervisory policies and guidelines Access all supervisory policies and guidelines on registration, supervision and enforcement related to the Retail Payment Activities Act and the Retail Payment Activities Regulations.
December 12, 2024 Glossary of terms about retail payments supervision Read the definitions of terms about retail payments supervision used in Bank of Canada supervisory policies and guidelines.
December 12, 2024 Safeguarding end-user funds This supervisory guideline is intended to help payment service providers subject to the Retail Payment Activities Act meet their obligations related to safeguarding end-user funds. Content Type(s): Retail payments supervision materials, Supervisory guidelines Topic(s): Supervision
December 12, 2024 Retail payments supervision: Key milestones Get an overview of what to expect as we prepare for the implementation of the Retail Payment Activities Act.
December 12, 2024 Public Awareness Surveys See why your opinion of the Bank matters to us, and find out about our latest Public Awareness Survey.
December 11, 2024 Bank of Canada Media Interview – The Globe and Mail Tiff Macklem, Governor of the Bank of Canada, gave an interview to Mark Rendell of the Globe and Mail, which will be published online and in the newspaper. Content Type(s): Press, Media advisories
December 11, 2024 Bank of Canada reduces policy rate by 50 basis points to 3¼% Media Relations Ottawa, Ontario The Bank of Canada today reduced its target for the overnight rate to 3¼%, with the Bank Rate at 3½% and the deposit rate at 3¼%. Content Type(s): Press, Press releases