G2 - Financial Institutions and Services - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:13:51+00:00Consumer Interest Rates and Retail Mutual Fund Flows
https://www.bankofcanada.ca/2012/12/working-paper-2012-39/
This paper documents a link between the real and financial sides of the economy. We find that retail equity mutual fund flows in Canada are negatively related to current and past changes in a component of the prime and 5-year mortgage rates that is uncorrelated with government rates.2012-12-18T11:02:44+00:00enConsumer Interest Rates and Retail Mutual Fund Flows2012-12-18Financial servicesInterest ratesWorking Paper 2012-39https://www.bankofcanada.ca/wp-content/uploads/2012/12/wp2012-39.pdfConsumer Interest Rates and Retail Mutual Fund FlowsJesus SierraDecember 2012GG2G21G23Access, Competition and Risk in Centrally Cleared Markets
https://www.bankofcanada.ca/wp-content/uploads/2012/11/bod-review-autumn12-fontaine.pdf
Central counterparties can make over-the-counter markets more resilient and reduce systemic risk by mitigating and managing counterparty credit risk. These benefits are maximized when access to central counterparties is available to a wide range of market participants. In an over-the-counter market, there is an important trade-off between risk and competition. A model of an over-the-counter market shows how risk and competition could be influenced by the incentives of market participants as they move to central clearing. In a centrally cleared market, there may be less risk when participation is high. This helps to explain why regulators have put in place requirements for fair, open and risk-based access criteria.2012-11-15T07:49:08+00:00enAccess, Competition and Risk in Centrally Cleared Markets2012-11-15Monetary Policy and the Risk-Taking Channel: Insights from the Lending Behaviour of Banks
https://www.bankofcanada.ca/wp-content/uploads/2012/11/boc-review-autumn12-paligorova.pdf
The financial crisis of 2007-09 and the subsequent extended period of historically low real interest rates have revived the question of whether economic agents are willing to take on more risk when interest rates remain low for a prolonged time period. This increased appetite for risk, which causes economic agents to search for investment assets and strategies that generate higher investment returns, has been called the risk-taking channel of monetary policy. Recent academic research on banks suggests that lending policies in times of low interest rates can be consistent with the existence of a risk-taking channel of monetary policy in Europe, South America, the United States and Canada. Specifically, studies find that the terms of loans to risky borrowers become less stringent in periods of low interest rates. This risk-taking channel may amplify the effects of traditional transmission mechanisms, resulting in the creation of excessive credit.2012-11-15T07:45:39+00:00enMonetary Policy and the Risk-Taking Channel: Insights from the Lending Behaviour of Banks2012-11-15The Changing Landscape for Retail Payments in Canada and the Implications for the Demand for Cash
https://www.bankofcanada.ca/wp-content/uploads/2012/11/boc-review-autumn12-arango.pdf
Over the past 20 years, there has been a major shift away from the use of paper-based retail payment instruments, such as cash and cheques, toward electronic means of payment, such as debit cards and credit cards. Recent Bank of Canada research on consumers’ choice of payment instruments indicates that cash is frequently used for transactions with low values because of its speed, ease of use and wide acceptance, while debit and credit cards are more commonly used for transactions with higher values because of perceived attributes such as safety and record keeping. While innovations in retail payments currently being introduced into the Canadian marketplace could lead to a further reduction in the use of cash over the longer term, the implications for the use of cash of some of the structural and regulatory developments under way are less clear.2012-11-15T07:40:57+00:00enThe Changing Landscape for Retail Payments in Canada and the Implications for the Demand for Cash2012-11-15The Role of Credit in International Business Cycles
https://www.bankofcanada.ca/2012/11/working-paper-2012-36/
This paper examines the role of bank credit in modeling and forecasting business cycle fluctuations, and investigates the international transmission of US credit shocks, using a global vector autoregressive (GVAR) framework and associated country-specific error correction models.2012-11-14T15:28:29+00:00enThe Role of Credit in International Business Cycles2012-11-14Business fluctuations and cyclesCredit and credit aggregatesEconometric and statistical methodsInternational financial marketsWorking Paper 2012-36https://www.bankofcanada.ca/wp-content/uploads/2012/11/wp2012-36.pdfThe Role of Credit in International Business CyclesTengTeng XuNovember 2012CC3C32EE3E32E4E44GG2G21Canadian Bank Balance-Sheet Management: Breakdown by Types of Canadian Financial Institutions
https://www.bankofcanada.ca/2012/09/discussion-paper-2012-7/
The authors document leverage, capital and liquidity ratios of banks in Canada. These ratios are important indicators of different types of risk with respect to a bank’s balance‐sheet management. Particular attention is given to the observations by different types of banks, including small banks that historically received less attention.2012-09-28T13:48:38+00:00enCanadian Bank Balance-Sheet Management: Breakdown by Types of Canadian Financial Institutions2012-09-28Financial institutionsFinancial stabilityFinancial system regulation and policiesDiscussion Paper 2012-7https://www.bankofcanada.ca/wp-content/uploads/2012/09/dp2012-07.pdfCanadian Bank Balance-Sheet Management: Breakdown by Types of Canadian Financial InstitutionsDavid Xiao ChenH. Evren DamarHani SoubraYaz TerajimaSeptember 2012GG2G21G28Price Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage Market
https://www.bankofcanada.ca/2012/09/working-paper-2012-30/
This paper measures market power in a decentralized market where contracts are determined through a search and negotiation process. The mortgage industry has many institutional features which suggest competitiveness: homogeneous contracts, negotiable rates, and, for a given consumer, common lending costs across lenders.2012-09-28T09:20:40+00:00enPrice Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage Market2012-09-28Financial institutionsFinancial servicesMarket structure and pricingWorking Paper 2012-30https://www.bankofcanada.ca/wp-content/uploads/2012/09/wp2012-30.pdfPrice Negotiation in Differentiated Products Markets: Evidence from the Canadian Mortgage MarketJason AllenRobert ClarkJean-François HoudeAugust 2012DD4GG2G21LL2L22Efficiency and Bargaining Power in the Interbank Loan Market
https://www.bankofcanada.ca/2012/09/working-paper-2012-29/
Using detailed loan transactions-level data we examine the efficiency of an overnight interbank lending market, and the bargaining power of its participants. Our analysis relies on the equilibrium concept of the core, which imposes a set of no-arbitrage conditions on trades in the market.2012-09-27T12:29:49+00:00enEfficiency and Bargaining Power in the Interbank Loan Market2012-09-27Financial institutionsPayment clearing and settlement systemsWorking Paper 2012-29https://www.bankofcanada.ca/wp-content/uploads/2012/09/wp2012-29.pdfEfficiency and Bargaining Power in the Interbank Loan MarketJason AllenJames ChapmanFederico EcheniqueMatthew ShumSeptember 2012CC7C71EE5E58GG2G21G28Does the Buck Stop Here? A Comparison of Withdrawals from Money Market Mutual Funds with Floating and Constant Share Prices
https://www.bankofcanada.ca/2012/08/working-paper-2012-25/
Recent reform proposals call for an elimination of the constant net asset value (NAV) or “buck” in money market mutual funds to reduce the occurrence of runs. Outside the United States, there are several countries that have money market mutual funds with and without constant NAVs.2012-08-27T10:00:33+00:00enDoes the Buck Stop Here? A Comparison of Withdrawals from Money Market Mutual Funds with Floating and Constant Share Prices2012-08-27Financial marketsFinancial stabilityMarket structure and pricingWorking Paper 2012-25https://www.bankofcanada.ca/wp-content/uploads/2012/08/wp2012-25.pdfDoes the Buck Stop Here? A Comparison of Withdrawals from Money Market Mutual Funds with Floating and Constant Share PricesJonathan WitmerAugust 2012FF3F30GG0G01G1G18G2G20An Analysis of Indicators of Balance-Sheet Risks at Canadian Financial Institutions
https://www.bankofcanada.ca/wp-content/uploads/2012/08/review-summer12-chen.pdf
This article examines four indicators of balance-sheet risks—leverage, capital, asset liquidity and funding—among different types of financial institutions in Canada over the past three decades. It also discusses relevant developments in the banking sector that could have contributed to the observed dynamics. The authors find that the various risk indicators decreased during the period for most of the non-Big Six financial institutions, but remained relatively unchanged for the Big Six banks. In addition, the balance-sheet risk indicators became more heterogeneous across financial institutions. The observed overall decline and increased heterogeneity follow certain regulatory changes, such as the introduction of the liquidity guidelines on funding in 1995 and the implementation of bank-specific leverage requirements in 2000. Given that these regulations required more balance-sheet risk management, they have likely contributed to the increased resilience of the banking sector.2012-08-16T08:39:22+00:00enAn Analysis of Indicators of Balance-Sheet Risks at Canadian Financial Institutions2012-08-16