LVTS Advances  (Large Value Transfer System)

 

An advance to an LVTS (Large Value Transfer System) participant to cover a deficit in its end-of-day cash position.

NOTE: The LVTS advance is commonly referred to as an overdraft loan. The interest rate on the one-business-day loan is set at the Bank Rate.

SEE ALSO The framework for the implementation of monetary policy in the Large Value Transfer System environment and “The LVTS—Canada's large-value transfer system” and “A primer on the implementation of monetary policy in the LVTS environment” published in the Autumn 1998 Bank of Canada Review