Following discussions earlier today, the CEOs of Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia and TD Bank Financial Group affirmed their commitment to work together to ensure that markets for bank-sponsored asset backed commercial paper (ABCP) continue to perform satisfactorily.

This commitment is backed by the banks’ strong capital positions, reflects their confidence in the quality of the underlying assets, and is supported by their ongoing commitment to provide liquidity for bank-sponsored ABCP on maturity.

The Bank of Canada said it sees joint commitment by major bank CEOs on bank-sponsored asset-backed commercial paper as a positive step.

In a statement, the Bank said, “The Bank of Canada continues to monitor the functioning of Canada’s financial markets and to make liquidity available as required.”

“The commitment by Canada’s major bank CEO’s to work together to support the performance and liquidity of the market for bank-sponsored asset-backed commercial paper is a further positive step to help re-establish well functioning money markets in Canada,” it added. “This commitment is underpinned by the strength of their financial positions, their confidence in the underlying assets, and their ongoing commitment to provide liquidity for bank-sponsored ABCP on maturity.”