Governance and organisational structure are identified as critical in managing liquidity risk, given that no narrowly prescribed approaches can be followed, as liquidity issues arise in different ways for institutions with different structures and businesses. Another area of recommendations from the IIF concerns the coordination of supervisor’s efforts, suggesting the harmonisation of regulations where possible in order to foster sound internal risk management systems.
Our GoC bond purchases since last March represent a little over 35 percent of the total amount of GoC bonds that are outstanding—by far the highest among this group of central banks (Chart 3). For more details on the different channels that QE works through, see Bank of Canada, “Monetary Policy Tools,” Monetary Policy Report (July 2020): 27–28.