IDEAS home Printed from
   My bibliography  Save this paper

Why the Bank of Canada Act Needs Updating: A Lesson from the Sub-Prime Crisis


  • John-Paul Koning


When trouble in the US housing market this past summer bubbled into problems in credit markets around the world, central banks took action. In a partially successful effort to keep those markets functioning smoothly, several central banks, including the Bank of Canada, took special steps to ensure liquidity – very short-term financing – was available to financial institutions. For the Bank of Canada, these steps included extending the list of securities it would accept as collateral when providing financing.

Suggested Citation

  • John-Paul Koning, 2007. "Why the Bank of Canada Act Needs Updating: A Lesson from the Sub-Prime Crisis," e-briefs 50, C.D. Howe Institute.
  • Handle: RePEc:cdh:ebrief:50

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    monetary policy; Bank of Canada;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:ebrief:50. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristine Gray). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.