Bank of Canada suffers  first loss in history: $522 million

Canada Global (Web News) Bank of Canada lost 522 million dollars in the third quarter of this year. This is the biggest loss for the bank in its 87-year history.
The central bank’s quarterly financial report said interest income from its assets could not keep pace with interest charges on deposits at the bank, leading to losses. Bank of Canada’s sharply improved interest rates this year also increased the cost of interest charges on settlement balance deposits in accounts at other major banks. Meanwhile, the central bank’s yield from government bonds remained flat.
The Bank of Canada was able to dramatically increase its assets under the government’s bond purchasing program.

This policy was part of the central bank’s efforts to get the economy back on track. Due to the expansion of this property, the burden on the central bank has increased and the bank has to pay off the government bonds by establishing a settlement balance.

The Bank of Canada’s biggest loss in its 87-year history was $522 million