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Email this11:05 am
December 12, 2009
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Following on its December 31, 2023's, more than $5.5 billion annual loss, the Bank of Canada has reported its second annual loss, albeit a narrower one, losing more than $3 billion for the Government of Canada.
As expected, assets (loans and bonds purchased from private sector banks, federal and provincial governments, etc.) on the bank's balance sheet during and after the COVID-19 era pandemic continue to roll off the balance sheet, while the interest rate it pays on deposits has come down, which combine to make up the two principal reasons for the smaller annual loss.
Nevertheless, in an era of increasing federal government deficits, it does put added pressure on the GoC's combined balance sheet, not being able to count on net income from the Bank of Canada and other Crown corporations to mute some of its own deficits.
Cheers,
Doug
4:57 pm
November 19, 2022
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loans and bonds purchased from private sector banks, federal and provincial governments, etc.
It is a good as printing money and greatly contributed to the increased inflation. Bank of Canada should not be buying anything from anyone.
Core functions of BOC.
Monetary policy
We set and implement policies to achieve and maintain price stability. By adjusting the policy interest rate and using other monetary tools, we influence the rate of inflation.
Financial system
We monitor and assess risks, provide liquidity to financial markets and oversee the stability of key financial infrastructures to safeguard the financial welfare of Canadians.
Currency
We design, issue and distribute Canada’s bank notes. We work to ensure that Canadians have access to secure, reliable and high-quality bank notes.
Funds management
As the government’s fiscal agent, we manage the government’s funds and debt. This includes conducting auctions of government securities, managing the government’s bank accounts and providing financial services to the government.
https://www.bankofcanada.ca/core-functions/
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