Market Operations and Liquidity Provision

Learn about the Bank’s policies for financial market operations and tools for providing liquidity to the financial system. This includes routine and emergency liquidity tools provided as part of the Bank’s role as lender of last resort.

A table of indicators related to the implementation of monetary policy that includes the operating band, settlement balances and other Bank of Canada operations.

Each of the tools used in the Bank’s framework for market operations and liquidity provision has specific rules and guidelines that are set out in terms and conditions.

The Bank of Canada, as Canada's central bank, is the ultimate source of liquid funds to the financial system. Learn about this role, known as “lender of last resort".

For transactions outstanding against securities purchased or sold under a term purchase and resale agreement, the Bank values the securities daily, and compares that value to the contract valuation to ensure the Bank is adequately protected.