Mr. Falk, the floor is yours.
Evidence of meeting #7 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was inflation.
A video is available from Parliament.
Evidence of meeting #7 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was inflation.
A video is available from Parliament.
3:50 p.m.
Conservative
Ted Falk Conservative Provencher, MB
Thank you, Mr. Chair.
Thank you, Mr. Macklem and Ms. Wilkins for your presentation.
I am just wondering how much of the federal debt the Bank of Canada holds.
3:50 p.m.
Governor, Bank of Canada
You mean the actual number? It is $343,905,000,000 as of about a week ago.
3:50 p.m.
Conservative
3:50 p.m.
Governor, Bank of Canada
The main source of additions would be the government bond purchase program, and that would be $162,979,000,000. There are also some additions: some treasury bills have been added. Those are very short-term debts, so those are rolling off.
3:50 p.m.
Conservative
Ted Falk Conservative Provencher, MB
Has the current government come to the Bank of Canada and asked for a credit limit?
3:50 p.m.
Conservative
3:50 p.m.
Governor, Bank of Canada
—that we are not funding the government. The government issues its debt in markets; market participants buy that debt, and then we're buying it in the marketplace from those participants. When that debt matures, whether it is on our balance sheet or anybody else's, the government will need to pay it back.
3:50 p.m.
Conservative
3:50 p.m.
Conservative
Ted Falk Conservative Provencher, MB
What level of federal government bond purchases is the bank comfortable with?
3:50 p.m.
Governor, Bank of Canada
Currently we're at about 30%. Other central banks have issued guidance that if the central bank holds more than 50% to 70%, that could start to impair market functioning. The Federal Reserve has indicated that for them it would be about 60%. We're at 30%, and keep in mind that before the crisis we were at about 15%. We regularly hold some on the balance sheet, but we have quite a lot of room. Something in that range would start to get uncomfortable.
3:50 p.m.
Conservative
Ted Falk Conservative Provencher, MB
That's correct. What percentage of the debt that you currently hold has short-term or less than 10-year maturity?
3:50 p.m.
Carolyn A. Wilkins Senior Deputy Governor, Bank of Canada
I know the average term to maturity of the government—
3:50 p.m.
Governor, Bank of Canada
I have those numbers, if you want to hold on for a second. When you get to—