The Strategist

Bank of Canada: We will support bank industry if necessary

03/30/2023 - 10:51

The Bank of Canada stated on Wednesday that it is ready to help if the financial system experiences extreme strain, but added that it would only provide emergency liquidity in the direst circumstances while attempting to reduce subjective risk.

Bank of Canada - Banque du Canada
Bank of Canada - Banque du Canada
The Bank of Canada's quantitative tightening program will be finished by the first half of 2025, according to Deputy Governor Toni Gravelle, who made the announcement during an address in Montreal.

The failure of the American Silicon Valley Bank and Signature Bank and the following bailout of Credit Suisse have forced central banks to closely monitor the possibility of a credit crisis brought on by banking sector instability.

According to Gravelle, “The Bank of (Canada) mission's to ensure financial system stability means that we are ready to respond in the event of significant market stress and to provide liquidity for the financial system.”