G18 - Government Policy and Regulation - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T07:41:14+00:00Intermediary Market Power and Capital Constraints
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-51/
We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.2023-10-04T14:39:48+00:00enIntermediary Market Power and Capital Constraints2023-10-04Financial institutionsMarket structure and pricingStaff Working Paper 2023-51https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-51.pdfStaff Working Paper 2023-51Jason AllenMilena WittwerOctober 2023DD4D40D44GG1G12G18G2G20LL1L10Stress Relief? Funding Structures and Resilience to the Covid Shock
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-7/
Funding structures affected the amount of financial stress different countries and sectors experienced during the spread of COVID-19 in early 2020. Policy responses targeting specific vulnerabilities were more effective at mitigating this stress than those supporting banks or the economy more broadly.2023-01-30T08:46:15+00:00enStress Relief? Funding Structures and Resilience to the Covid Shock2023-01-30Coronavirus disease (COVID-19)Exchange ratesFinancial institutionsFinancial stabilityFinancial system regulation and policiesInternational topicsStaff Working Paper 2023-7https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-7.pdfStress Relief? Funding Structures and Resilience to the Covid ShockKristin ForbesChristian FriedrichDennis ReinhardtJanuary 2023EE4E44E6E65FF3F31F36F4F42GG1G18G2G23G3G38Cyber Risk and Security Investment
https://www.bankofcanada.ca/2022/07/staff-working-paper-2022-32/
We develop a principal-agent model of cyber-attacking with fee-paying clients who delegate security decisions to financial platforms. We derive testable implications about clients’ vulnerability to cyber attacks and about the fees charged.2022-07-14T12:03:41+00:00enCyber Risk and Security Investment2022-07-14Economic modelsFinancial servicesFinancial stabilityFinancial system regulation and policiesPayment clearing and settlement systemsStaff Working Paper 2022-32https://www.bankofcanada.ca/wp-content/uploads/2022/07/swp2022-32.pdfCyber Security and Ransomware in Financial MarketsToni AhnertMichael BrolleyDavid CimonRyan RiordanJuly 2022DD7D78D8D81GG1G18G2G21G23Stablecoin Assessment Framework
https://www.bankofcanada.ca/2021/04/staff-discussion-paper-2021-6/
We offer relevant authorities a three-step assessment framework they can use to understand, identify and quantify the risks associated with stablecoin and other cryptocurrency arrangements.2021-04-08T14:50:56+00:00enStablecoin Assessment Framework2021-04-08Digital currencies and fintechFinancial institutionsFinancial marketsFinancial system regulation and policiesPayment clearing and settlement systemsStaff Discussion Paper 2021-6https://www.bankofcanada.ca/wp-content/uploads/2021/04/sdp2021-6.pdfStaff Discussion Paper 2021-6Alejandro GarcíaBena LandsDennis YanchusApril 2021DD7D78D8D81GG0G01G1G18OO3O38Consumer Credit with Over-optimistic Borrowers
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-57/
When lenders cannot directly identify behavioural and rational borrowers, they use type scoring to track the likelihood of a borrower’s type. This leads to the partial pooling of borrowers, which results in rational borrowers subsidizing borrowing costs for behavioural borrowers. This, in turn, reduces the effectiveness of regulatory policies that target mistakes by behavioural borrowers.2020-12-30T08:51:56+00:00enConsumer Credit with Over-optimistic Borrowers2020-12-30Credit and credit aggregatesCredit risk managementFinancial system regulation and policiesStaff Analytical Note 2020-57https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-57.pdfStaff Analytical Note 2020-57Florian ExlerIgor LivshitsJames (Jim) C. MacGeeMichèle TertiltDecember 2020EE2E21E4E49GG1G18KK3K35Monetary Policy Independence and the Strength of the Global Financial Cycle
https://www.bankofcanada.ca/2020/06/staff-working-paper-2020-25/
We propose a new strength measure of the global financial cycle by estimating a regime-switching factor model on cross-border equity flows for 61 countries. We then assess how the strength of the global financial cycle affects monetary policy independence, which is defined as the response of central banks' policy interest rates to exogenous changes in inflation.2020-06-10T11:42:33+00:00enMonetary Policy Independence and the Strength of the Global Financial Cycle2020-06-10Business fluctuations and cyclesExchange rate regimesFinancial system regulation and policiesInternational financial marketsMonetary policyStaff Working Paper 2020-25https://www.bankofcanada.ca/wp-content/uploads/2020/06/swp2020-25.pdfMonetary Policy Independence and the Strength of the Global Financial CycleChristian FriedrichPierre GuérinDanilo Leiva-LeonJune 2020EE4E5FF3F32F4F42GG1G15G18Trading for Bailouts
https://www.bankofcanada.ca/2020/06/staff-working-paper-2020-23/
In times of high uncertainty, governments often implement interventions such as bailouts to financial institutions. To use public resources efficiently and to avoid major spillovers to the rest of the economy, policy-makers try to identify which institutions should receive assistance.2020-06-08T13:49:09+00:00enTrading for Bailouts2020-06-08Financial institutionsFinancial marketsFinancial system regulation and policiesLender of last resortStaff Working Paper 2020-23https://www.bankofcanada.ca/wp-content/uploads/2020/06/swp2020-23.pdfStaff Working Paper 2020-23Toni AhnertCaio MachadoAna Elisa PereiraJune 2020DD8D83GG1G12G14G18Canadian Securities Lending Market Ecology
https://www.bankofcanada.ca/2019/07/staff-discussion-paper-2019-5/
This is the fourth of the Financial Markets Department’s descriptions of Canadian financial industrial organization. The paper discusses the organization of the securities lending market in Canada. We outline key characteristics of securities lending contracts, participants in the securities lending market, the market infrastructures that support securities lending activities, and aggregated statistics describing the Canadian market.2019-07-11T08:45:58+00:00enCanadian Securities Lending Market Ecology2019-07-11Financial institutionsFinancial marketsFinancial system regulation and policiesMarket structure and pricingStaff Discussion Paper 2019-5https://www.bankofcanada.ca/wp-content/uploads/2019/07/sdp2019-5.pdfCanadian Securities Lending Market EcologyJesse JohalJoanna RobertsJohn SimJuly 2019GG1G18G2G21G23Characterizing the Canadian Financial Cycle with Frequency Filtering Approaches
https://www.bankofcanada.ca/2018/10/staff-analytical-note-2018-34/
In this note, I use two multivariate frequency filtering approaches to characterize the Canadian financial cycle by capturing fluctuations in the underlying variables with respect to a long-term trend. The first approach is a dynamically weighted composite, and the second is a stochastic cycle model.2018-10-26T12:28:48+00:00enCharacterizing the Canadian Financial Cycle with Frequency Filtering Approaches2018-10-26The Impact of Government Debt Supply on Bond Market Liquidity: An Empirical Analysis of the Canadian Market
https://www.bankofcanada.ca/2018/07/staff-working-paper-2018-35/
This paper finds that Government of Canada benchmark bonds tend to be more illiquid over the subsequent month when there is a large increase in government debt supply. The result is both statistically and economically significant, stronger for the long-term than the short-term sector, and is robust when other macro factors are controlled for.2018-07-24T16:16:15+00:00enThe Impact of Government Debt Supply on Bond Market Liquidity: An Empirical Analysis of the Canadian Market2018-07-24Asset pricingDebt managementFinancial marketsStaff Working Paper 2018-35https://www.bankofcanada.ca/wp-content/uploads/2018/07/swp2018-35.pdfThe Impact of Government Debt Supply on Bond Market Liquidity: An Empirical Analysis of the Canadian MarketJeffrey GaoJianjian JinJacob ThompsonJuly 2018DD5D53GG1G12G18G2G3G32