James Chapman

Senior Research Director

James Chapman is the Senior Research Director in the Funds Management and Banking Department at the Bank of Canada. James received a Ph.D. in economics and a MSc in statistics from the University of Iowa in 2006 and joined the Bank of Canada as a senior analyst in that year. James’s primary research focus has been on payment and settlement related issues such as liquidity risk and credit risk in large-value payment systems and interbank markets. He has also recently become increasingly involved on research related to financial intermediation related topics such as shadow banking.

Contact

James Chapman

Senior Research Director
Funds Management and Banking

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9

Latest

25 May 2017 Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?

Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?, James Chapman, Rod Garratt, Scott Hendry, Andrew McCormack and Wade McMahon, describes a joint endeavour between public and private sectors to explore a wholesale payment system based on distributed ledger technology (DLT). They find that a stand-alone DLT system is unlikely to be as beneficial as a centralized payment system in terms of core operating costs; however, it could increase financial system efficiency as a result of integration with the broader financial market infrastructure.

Asset Encumbrance, Bank Funding and Financial Fragility

Staff Working Paper 2016-16 Toni Ahnert, Kartik Anand, Prasanna Gai, James Chapman
How does asset encumbrance affect the fragility of intermediaries subject to rollover risk? We offer a model in which a bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses.

Shock Transmission Through International Banks: Canada

Technical Report No. 105 James Chapman, H. Evren Damar
In this paper, we investigate how liquidity conditions in Canada may affect domestic and/or foreign lending of globally active banks and whether this transmission is influenced by individual bank characteristics.
Content Type(s): Technical Reports Topic(s): Financial Institutions, Financial stability JEL Code(s): E, E4, E44, F, F3, F36, G, G2, G21, G3, G32

Public Policy Objectives and the Next Generation of CPA Systems: An Analytical Framework

Staff Discussion Paper 2015-6 James Chapman, Jonathan Chiu, Sajjad Jafri, Héctor Pérez Saiz
The payments landscape in Canada is rapidly changing and will continue to evolve, fuelled by strong and persistent drivers. In Canada, the Canadian Payments Association (CPA) is on a path to modernize Canada’s core payment systems.

21 February 2013 Conference Summary: Financial Intermediation and Vulnerabilities

The Bank of Canada’s annual economic conference, held in October 2012, brought together experts from across Canada and around the world to discuss key issues concerning financial intermediation and vulnerabilities. The conference covered such topics as household finances and their relationship to financial stability, as well as bank regulation, securitization and shadow banking.

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Other

Journal Articles

  • "Efficiency and Bargaining Power in the Interbank Loan Market
    (with Jason Allen, Federico Echenique and Matthew Shum), International Economic Review, May 2016, vol. 57(2), p. 691-716.
  • “Central Bank Haircut Policy”
    (with Jonathan Chiu and Miguel Molico) Annals of Finance, Vol. 7, No. 3, (August 2011), pages 319-348
  • “A Model of Tiered Settlement Networks”
    (with Jonathan Chiu and Miguel Molico) Journal of Money, Credit and Banking, Forthcoming
  • “Rediscounting Under Aggregate Risk with Moral Hazard”
    (with Antoine Martin) Journal of Money, Credit and Banking, Forthcoming
  • "Bounding Revenue Comparisons across Multi-Unit Auction Formats under ?-Best Response"
    (with David McAdams and Harry J. Paarsch) American Economic Review, Vol. 97, No. 2 (May 2007), pages 455-458.
  • "Which Bank is the 'Central' Bank? An Application of Markov Theory to the Canadian Large-Value Transfer System"
    (with Morten Bech and Rod Garratt), Journal of Monetary Economics, Vol. 57, No. 3 (April 2010), pages 352-363.

Other Research

Work in Progress

  • "Matching in the Interbank Market"

Education

  • B.A. Economics Concordia University (1998)
  • M.A. Economics Concordia University (2001)
  • M.Sc Statistics University of Iowa (2006)
  • Ph.D. Economics University of Iowa (2006)

Research Interests

  • Money and Banking
  • Financial Intermediation
  • Payment and Settlement Systems

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