Bank of Canada Urges Institutions to Use Standing Liquidity Facility Without Stigma

The Bank of Canada on September 29, 2026, jointly with the Office of the Superintendent of Financial Institutions, urged financial institutions to use its Standing Liquidity Facility for overnight liquidity without viewing it as a sign of stress. "We view an institution's use of the SLF for overnight liquidity as a normal part of day-to-day liquidity management, not as an exceptional event or a sign of stress," Deputy Governor Toni Gravelle said at a Bloomberg conference in New York. The SLF provides fully secured intraday and overnight credit to participants in Canada's high-value payment system, Lynx. The BoC and OSFI consider such use consistent with routine liquidity management. Gravelle also said the central bank is updating its repo clearing infrastructure with a new tri-party platform to develop the term repo market and attract participants such as large corporate treasuries.