primary dealers ; and a 3 - month term pra maturity was added. the bank also temporarily broadened the list of securities eligible as assets in term pra transactions to include own - issued abcp. as the crisis deepened through the rest of the autumn of 2008, new measures were introduced. in october, the bank temporarily broadened the list of assets accepted as collateral to include the canadian - dollar non - mortgage loan portfolios of lvts direct participants. 15 these assets were eligible to secure intraday exposures in the lvts and, correspondingly, to secure loans under the standing liquidity facility. also in october, because the traditional liquidity transmission mechanism was not operating, and thus to address liquidity shortages beyond our traditional counterparties, we introduced a new term pra facility aimed directly at large participants in the money markets. in designing and implementing these tools, the bank was guided in particular by the third principle, which recommends using the right tool for the job. in november, we introduced a term loan facility at a penalty rate for direct participants in the lvts, secured by their canadian - dollar non - mortgage loan portfolios. because this auction facility accepted these largely non - marketable, illiquid assets as collateral, participants in the lvts were able to use their marketable, liquid collateral elsewhere. this loan facility was used to make liquidity available to individual financial institutions that may have had difficulties managing their balance sheets but whose problems were not serious enough to warrant emergency lending assistance. later, in february 2009, the term pra for money market instruments was broadened to provide liquidity to participants in canadian private sector bond markets as well. correspondingly, the list of securities accepted as collateral was broadened to include investment - grade corporate bonds. in designing the term loan facility and the term pra for private sector instruments, the bank was guided by the fourth principle, which recommends minimizing market distortions. the facilities use an auction mechanism to allocate liquidity so that the price of liquidity is determined competitively by participants, rather than by the bank. both the term pra facility for private sector instruments and the term loan facility were designed as backstop facilities with appropriate minimum bid rates, which provided the bank with a natural means to exit from them when market sources of liquidity became a more cost - effective alternative for potential participants. in addition, the facilities were designed to preserve the existing market structures. finally, intervention was aimed

to conclude, the principles developed as the crisis began have served the bank and, more importantly, the financial system well. throughout the crisis, the bank has been innovative and nimble. 27 in this period of winding down our temporary facilities, we are acting deliberately and thoughtfully, for example, by providing advance notice and by only gradually reducing both the amounts and frequencies of the auctions. we will continue to act in this manner as we move to reinforce the stability and resilience of the financial system – and, both in the near and longer term, we will continue to employ these principles to guide our actions. an example is allowing lvts participants to assign their non - mortgage loan portfolios as eligible collateral for lvts and slf purposes, a practice that we have indicated will be partially kept in place going forward.