Nine Canadian banks access central bank's liquidity facility: industry group

FILE PHOTO: A Bank of Montreal (BMO) logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo

TORONTO (Reuters) - Nine Canadian banks, including the nation’s six biggest lenders, have begun accessing the central bank’s new liquidity facility, the Canadian Bankers Association said on Tuesday.

The Standing Term Liquidity Facility, which the Bank of Canada launched on Monday, allows eligible financial institutions to borrow from the central bank by pledging collateral, including mortgages, to fund new lending.

Bank of Montreal BMO.TO, Canadian Western Bank CWB.TO, Canadian Imperial Bank of Commerce CM.TO, Equitable Bank EQB.TO, HSBC Bank Canada HSBA.L, National Bank of Canada NA.TO, Royal Bank of Canada RY.TO, Bank of Nova Scotia BNS.TO and TD Bank Group TD.TO are accessing the facility, the industry group said.

Reporting By Nichola Saminather; Editing by Denny Thomas and Chizu Nomiyama