Christopher Graham

Regulatory Constraints on Leverage: The Canadian Experience

The Impact of Liquidity on Bank Profitability

The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are devising new liquidity standards with the aim of making the financial system more stable and resilient. In this paper, the authors analyse the impact of liquid asset holdings on bank profitability for a sample of large U.S. and Canadian banks.

Regulatory Constraints on Bank Leverage: Issues and Lessons from the Canadian Experience

The Basel capital framework plays an important role in risk management by linking a bank's minimum capital requirements to the riskiness of its assets. Nevertheless, the risk estimates underlying these calculations may be imperfect, and it appears that a cyclical bias in measures of risk-adjusted capital contributed to procyclical increases in global leverage prior to the recent financial crisis.

Corporate Balance Sheets in Developed Economies: Implications for Investment

In this paper, the authors examine the aggregate national balance-sheets of non-financial corporations in Australia and the G7 countries with a view to assessing both their financial structure and their financial position. More importantly, the authors investigate whether the financial position of non-financial corporations (i.e., debt-to-equity ratio) is material to the economy's investment prospects and whether the importance of this channel differs depending on the structure of corporate financing i.e., bank-based or market-oriented financing structures.

Convergence of Government Bond Yields in the Euro Zone: The Role of Policy Harmonization

Since the early 1980s, long-term government bond yields in the euro zone have declined, in line with those in other industrialized countries.

Financial Conditions Indexes for Canada

The authors construct three financial conditions indexes (FCIs) for Canada based on three approaches: an IS-curve-based model, generalized impulse-response functions, and factor analysis.