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Bank of Canada urges institutions not to fear liquidity facility

Original: Canadian institutions should not fear using liquidity facility, says Bank of Canada

The Bank of Canada is telling financial institutions they should not hesitate to use its liquidity facility when needed, according to reporting carried by Reuters and multiple US outlets. The central bank's message is aimed at removing any stigma around tapping emergency-style funding, encouraging institutions to seek support early rather than wait until stress builds. The remarks come amid heightened attention to banking-sector liquidity safeguards worldwide.

Why now: Central bank comments reassurance about liquidity tools draw attention amid ongoing concern over banking-sector stability.

Bank of CanadaCanadian financial institutions

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