The Bank of Canada and OSFI said September 29 that use of the Standing Facility is a normal part of payment and liquidity management. Eligible Lynx participants obtain secured intraday and overnight liquidity; an end-of-day shortfall automatically produces an overnight advance under the applicable rules.
Source / event date: September 29, 2026
The Financial Current · https://thefinancialcurrent.com/news/2026-09-29-canada-standing-liquidity-clarification
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Analysis: The clarification matters when interpreting payment-system borrowing: an automatic secured settlement advance is not, by itself, evidence of institutional distress. monitoring should distinguish routine settlement mechanics from emergency support and evaluate collateral and funding conditions separately.
This is a Canadian operational clarification, not an announcement of a bank rescue, an expansion of eligibility or a U.S. rule.
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