Canadian banks today released statements on their degree of involvement in the asset-backed commercial paper market in Canada.

CIBC said that while its direct holdings in the third-party Asset Backed Commercial Paper Market are not significant, the bank “is supportive of the industry restructuring and orderly resolution of the non-bank Asset Backed Commercial Paper market in Canada.”

TD Bank Financial Group (clarified that it does not have any exposure to Asset Backed Commercial Paper (ABCP) products covered by the agreement struck by a number of major players in Canada’s financial market.

This includes holdings within TD Mutual Funds and other money market funds managed by TD Asset Management Inc. In addition, the bank noted that “TD sponsored ABCP conduits continue to perform satisfactorily with reasonable liquidity.”

TD added it is supportive of initiatives designed to ensure the orderly conduct of financial markets.

“Like all financial institutions, TD Bank has an interest in the orderly conduct of financial markets. We are supportive of attempts to resolve issues, even if we are not directly involved and would encourage other financial institutions to do the same,” said Ed Clark, President and CEO, TD Bank.

Royal Bank of Canada said it “welcomes the initiative announced this morning on a proposed solution to the liquidity problem faced by the Canadian non-bank administered asset-backed commercial paper market. RBC will support actions to achieve an orderly resolution over the work out period.”

The bank added that RBC does not have significant exposure to this market.

“RBC continues to provide active secondary support for its own RBC-administered asset-backed commercial paper conduits programs, which have not experienced liquidity issues,” the bank said.

BMO Financial Group also confirmed that it will continue to support its existing commitments to provide liquidity to its own bank-sponsored asset-backed commercial paper programs.

BMO said is supportive of the industry restructuring and orderly resolution of the non-bank asset-backed commercial paper market in Canada that was announced this morning.

Bank of Nova Scotia confirmed that it is supportive of initiatives to provide stability to the Canadian third-party structured finance asset-backed commercial paper (non-bank) market. It added that the bank does not hold a significant amount of this paper.

Scotiabank also reinforced its ongoing commitment to continue to provide full liquidity support for all Scotiabank-sponsored asset-backed commercial paper programs, including King Street Funding Trust and Bay Street Funding Trust.