Bank of Canada Reassures FIs on Standing Liquidity Facility Use

The Bank of Canada is reassuring financial institutions that using its Standing Liquidity Facility (SLF) for overnight liquidity will not be seen as a sign of stress.

In a joint statement with the Office of the Superintendent of Financial Institutions, the BoC said SLF advances are considered normal and part of routine liquidity management activities.

Deputy Governor Toni Gravelle emphasized that using the SLF is not an exceptional event or a sign of stress, but rather a normal part of day-to-day operations.