The Bank of Canada announced that, due to the continued improvement in market conditions, it is terminating some of its temporary liquidity facilities.

The ‘term PRA facility for private sector instruments’ and the ‘term loan facility’ will expire at the end of October, the Bank said, citing, “the improved conditions in funding markets, as evidenced by lower market-based funding costs and the lack of coverage in recent auctions for temporary liquidity facilities.”

It noted that the ‘term purchase and resale agreement facility’ will continue to at least the end of January 2010, however operations will be held on a bi-weekly basis, rather than weekly, as of October 26.

The Bank reiterated that it “continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.”

IE