The federal government committed hundreds of millions of dollars in its recent budget to help reinforce Canada91裸聊视频檚 cyber defences 91裸聊视频� but if the effort fails to prevent a major attack, Ottawa can always turn to its little-known $102-billion emergency stash.

The rainy day fund of highly liquid assets is available to keep the government running for at least a month should the country ever find itself confronted by a severe crisis, such as a cyberattack that impairs access to financial markets.

The assets are held in what the government calls its 91裸聊视频漰rudential liquidity plan,91裸聊视频� part of which can be compared to a chequing account that offers Ottawa quick access to the funds, if necessary.

A recently released briefing note for Finance Minister Bill Morneau explained details about the unheralded plan.

91裸聊视频淐anada holds liquidity reserves as a hedge against highly unlikely but potentially disruptive stress events,91裸聊视频� said the August 2017 memo, obtained by The Canadian Press via the Access to Information Act.

91裸聊视频淭he (prudential liquidity plan) framework ensures that the government holds sufficient high quality liquid assets to cover a 91裸聊视频榮urvival horizon91裸聊视频� of at least one month.91裸聊视频�

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The nest egg91裸聊视频檚 contents are made up of about $2 billion worth of cash balances at the Bank of Canada; $10 billion in cash balances that are auctioned off to financial institutions for durations of typically less than one week so they generate returns; a callable demand deposit of $20 billion at the Bank of Canada; and about $70 billion of foreign reserve assets from Ottawa91裸聊视频檚 exchange fund account.

In last month91裸聊视频檚 budget, the government earmarked $507.7 million over five years to strengthen the country91裸聊视频檚 protections and response capabilities in the event of an cyberattack. The investments will support a new national cybersecurity strategy, a new Canadian Centre for Cyber Security and the creation of a national cybercrime co-ordination unit by the RCMP.

Morneau91裸聊视频檚 plan also dedicated $2.2 billion over six years to improve the government91裸聊视频檚 IT services and infrastructure, an investment that includes support for efforts to proactively address cybersecurity threats.

91裸聊视频淐yberattacks are becoming more pervasive, increasingly sophisticated and ever more effective,91裸聊视频� Morneau91裸聊视频檚 budget said.

91裸聊视频淪uccessful cyberattacks have the potential to expose the private information of Canadians, cost Canadian businesses millions of dollars, and potentially put Canada91裸聊视频檚 critical infrastructure networks at risk.91裸聊视频�

The Bank of Canada has also issued warnings about cyber threats. It has said the country91裸聊视频檚 interconnected banks are vulnerable to a cascading series of attacks, something that could undermine broad confidence in the financial system.

The central bank91裸聊视频檚 governor, Stephen Poloz, has described a severe cyberattack as his worst nightmare. Poloz has said he struggles to even imagine what such an event 91裸聊视频� and the extent of the resulting damage 91裸聊视频� might look like.

Canada has long maintained a liquidity management framework but, after the events surrounding the financial crisis of 2008, prudential liquidity was highlighted as a key issue, especially for financial institutions.

Ottawa decided it was important for the government too and introduced the current framework in its 2011 budget. The government calibrated its one-month target to be similar to international guidelines for large banks that followed the financial crisis.

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The briefing note to Morneau outlined two objectives of the prudential liquidity plan.

The first is to ensure the government can continue operations and meet its payment obligations, even during stress events. The second objective for the plan is that its existence is intended to support market confidence in the government91裸聊视频檚 debt program.

The Finance Department recently completed a comprehensive review of the prudential liquidity plan to ensure it held enough liquidity to cover appropriate government liabilities for at least a month, the briefing note said.

Since the federal plan was implemented, the document said provinces, including Ontario and Quebec, have formalized their own liquidity reserves. Other countries, including the United States, maintain similar prudential liquidity reserves, it said.

J.P. Koning, a financial writer and monetary policy watcher, has written about Ottawa91裸聊视频檚 prudential liquidity plan. He says having the plan isn91裸聊视频檛 harmful for the government but he questions whether it91裸聊视频檚 needed since Ottawa could always seek extra funds once a crisis occurs.

91裸聊视频淚t seems like perhaps it might be a bit of a waste of time and resources,91裸聊视频� said the former banker, who offered one possible explanation.

91裸聊视频淎fter the credit crisis, a lot of paranoia set in.91裸聊视频�

Andy Blatchford, The Canadian Press

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