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Gravelle: Getting to a new normal
A balance sheet is a financial statement that shows what an organization owns (its assets) and what it owes (its liabilities). At the Bank, we have financial assets on our balance sheet to support our core policy functions—not to make a profit. For every liability on our balance sheet, we need a corresponding asset. The Bank’s balance sheet has three main types of liabilities: Cash: the bank notes in wallets and cash registers across the country Government deposits: the funds that the Government of Canada (GoC) deposits with us to meet its day-to-day banking needs Settlement balances: the reserves used to settle ...
Added at 9:37am
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— FinancialJuice (@financialjuice) March 21, 2024BOC’S DEP. GOV. GRAVELLE: THE BANK WILL CONTINUE THE PROCESS OF NORMALISING ITS BALANCE SHEET; WE ARE AWARE THERE IS A RISK WE COULD BE WRONG ABOUT THE C$20 BLN TO C$60 BLN RANGE.
Added at 9:37am
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— FinancialJuice (@financialjuice) March 21, 2024BOC’S DEP. GOV. GRAVELLE: WE WILL LEAN TOWARDS HOLDING SETTLEMENT BALANCES AT THE MINIMUM LEVEL NEEDED TO EFFECTIVELY IMPLEMENT MONETARY POLICY IN A FLOOR SYSTEM.
Added at 9:37am
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— FinancialJuice (@financialjuice) March 21, 2024BOC’S DEP. GOV. GRAVELLE: THE RECENT PRESSURES DIDN'T CHANGE OUR VIEW OF LEVEL OF SETTLEMENT BALANCES NEEDED IN A FLOOR SYSTEM.
Added at 9:38am
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— FinancialJuice (@financialjuice) March 21, 2024BOC’S DEP. GOV. GRAVELLE: I'M CONFIDENT THAT QT WAS NOT A MAIN DRIVER OF THE PRESSURES WE SAW IN OVERNIGHT REPO MARKETS EARLIER THIS YEAR; NOR DO WE SEE ANY SIGNS OF STRESS IN FINANCIAL SYSTEM THAT CAN BE TIED TO THOSE PRESSURES.