✉news BusinessBanking first seen 1 d ago, last 1 d ago, peak #34
Bank of Canada Urges Banks to Use Liquidity Facility Freely
Original: Bank of Canada urges banks to use liquidity facility without stigma
The Bank of Canada is calling on banks to make use of its liquidity facility without worrying about stigma, stressing that borrowing from the central bank should be seen as normal prudential practice rather than a sign of weakness. The message aims to encourage institutions to tap standby funding when needed, reflecting broader concern among regulators that fear of reputational damage can deter healthy banks from accessing liquidity in times of stress.
Why now: Central banks worldwide are pressing lenders to destigmatize liquidity tools after recent banking stress showed reluctance to borrow can worsen crises.
Evidence
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