Bank of Canada 2022 Financial Statements

Summary#

This Canada Gazette supplement publishes the Bank of Canada’s audited financial statements for the year ending December 31, 2022. It shows the Bank reported a net loss of $1,111 million for 2022 and an accumulated deficit of $1,086 million; the independent auditors issued a clean opinion. The supplement was published on April 29, 2023.

What it does#

• Publishes the Bank’s audited statements prepared under International Financial Reporting Standards (IFRS), including the statement of financial position, statement of net income (loss) and comprehensive income (loss), cash flows and detailed notes.
• Prints the independent auditors’ report from Ernst & Young LLP and KPMG LLP, which found the statements presented fairly in all material respects.
• Gives key balance-sheet and results figures, including:
  • Total assets: $410,710 million.
  • Bank notes in circulation: $119,726 million.
  • Deposits (total): $273,333 million (including $196,092 million from members of Payments Canada).
  • Net loss for the year: $1,111 million; comprehensive loss: $705 million.
  • Accumulated deficit as at year-end: $1,086 million.
• Describes material explanations and risks in the notes: how the Bank measures assets and liabilities, the role of indemnity agreements with the Government of Canada, pension and other employee benefit information, and the Bank’s liquidity and market-risk positions.

Who's affected#

• The general public and taxpayers, because the statements show how the central bank’s finances and remittances to the government are determined.
• The Government of Canada, which is the Bank’s shareholder and counterparty on indemnity agreements and deposit accounts.
• Commercial banks and other financial institutions that use Bank of Canada services and infrastructure, including members of Payments Canada (large deposit and settlement balances are shown).
• Participants in financial markets who watch central-bank balance-sheet changes and risks (the statements explain holdings, derivatives and indemnities).
• Members of the Bank of Canada Pension Plan and other employee-benefit plans, since the report discloses plan assets, obligations and actuarial assumptions.

Why it matters#

• The figures show the Bank recorded a large accounting loss in 2022. That reflects how financial markets and interest rates affected the value of assets the Bank holds. A loss can reduce or eliminate the surplus the Bank would otherwise remit to the government.
• The statements explain risks and protections that matter to Canadians: the Bank’s ability to create Canadian-dollar liquidity, the use of indemnity agreements with the Government of Canada, and how unrealized market moves and pension remeasurements affect reported equity.
• For everyday life, this matters because the Bank’s balance sheet underpins monetary policy, payment systems and the supply of bank notes — all of which affect borrowing costs, the stability of payments and confidence in cash.
• The report is factual and audited. It does not itself change policy. It helps the public, markets and government understand the Bank’s financial position and the sources of its gains and losses.