Jason Allen - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T15:01:06+00:00Household Insolvency in Canada
https://www.bankofcanada.ca/wp-content/uploads/2012/02/boc-review-winter11-12-allen.pdf
With increasing levels of household debt in recent years, the number of households that may be vulnerable to a negative economic shock is rising as well. Decisions made by both the debtor and the creditor can contribute to insolvency. This article presents some stylized facts about insolvency in Canada’s household sector and analyzes the role of creditors in insolvencies. The average debt of an individual filing for bankruptcy is more than 1.5 times that of an average Canadian household; bankruptcy filers tend to be unemployed or in low-wage jobs, and are typically renters. The article reports that banks that approve more loans per branch, which is interpreted as less-intensive use of soft information (such as the loan officer’s assessment of the applicant’s character), experience more client bankruptcies. This finding has important policy implications, because financial institutions that do not use soft information risk further deterioration in their lending portfolios.2012-02-23T10:00:21+00:00enHousehold Insolvency in Canada2012-02-23Price Competition and Concentration in Search and Negotiation Markets: Evidence from Mortgage Lending
https://www.bankofcanada.ca/2012/02/working-paper-2012-4/
This paper examines the impact of bank consolidation on mortgage rates in order to evaluate the extent to which mortgage markets are competitive. Mortgage markets are decentralized and so rates are determined through a search and negotiation process.2012-02-08T11:43:33+00:00enPrice Competition and Concentration in Search and Negotiation Markets: Evidence from Mortgage Lending2012-02-08Financial institutionsFinancial servicesInterest ratesWorking Paper 2012-4https://www.bankofcanada.ca/wp-content/uploads/2012/02/wp2012-04.pdfPrice Competition and Concentration in Search and Negotiation Markets: Evidence from Mortgage LendingJason AllenRobert ClarkJean-François HoudeFebruary 2012GG2LL1