Starting in the fall of 2008,the Bank of Canada sharply reduced its holdings of traditional securities like Treasury bills,as its lending to financial institutions skyrocketed.Such a plan of action was followed by the Bank of Canada to:

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The sharp reduction in holdings of traditional securities by the Bank of Canada was aimed at keeping interest rates on loans to firms from soaring. As the bank's lending to financial institutions increased, it needed to free up its balance sheet to provide liquidity and keep interest rates in check. This action was part of the bank's overall monetary policy to stabilize the economy during the financial crisis.

Starting in the Fall of 2008,the Bank of Canada Sharply