Financial stability - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T12:31:54+00:00Exchange-Traded Funds: Evolution of Benefits, Vulnerabilities and Risks
https://www.bankofcanada.ca/wp-content/uploads/2014/12/fsr-december14-foucher.pdf
Ian Foucher and Kyle Gray explain the different types of exchange-traded funds (ETFs), which present both benefits and risks for investors. They discuss ways in which the risk characteristics of certain ETF products could have broader implications for the financial system, and describe the evolution of ETF market structure and regulation in different jurisdictions as authorities try to mitigate risks related to ETFs.2014-12-10T07:50:07+00:00enExchange-Traded Funds: Evolution of Benefits, Vulnerabilities and Risks2014-12-10Cyber Security: Protecting the Resilience of Canada’s Financial System
https://www.bankofcanada.ca/wp-content/uploads/2014/12/fsr-december14-morrow.pdf
Harold Gallagher, Wade McMahon and Ron Morrow examine the various sources of cyber attacks and their potential for systemic risk. Against this background, the report highlights efforts being made to protect against cyber-security threats, including individual and collective actions by financial institutions and financial market infrastructures, as well as initiatives by international organizations, regulatory authorities and governments. The authors then describe the coordination, under the Joint Operational Resilience Management program, of private and public sector actions in Canada for managing and testing capabilities during severe operational events such as cyber attacks.2014-12-10T07:49:18+00:00enCyber Security: Protecting the Resilience of Canada’s Financial System2014-12-10Integrating Uncertainty and Monetary Policy-Making: A Practitioner’s Perspective
https://www.bankofcanada.ca/2014/10/discussion-paper-2014-6/
This paper discusses how central banking is evolving in light of recent experience, with particular emphasis on the incorporation of uncertainty into policy decision-making.2014-10-10T10:53:48+00:00enIntegrating Uncertainty and Monetary Policy-Making: A Practitioner’s Perspective2014-10-10Economic modelsFinancial stabilityMonetary policy and uncertaintyMonetary policy communicationsMonetary policy frameworkDiscussion Paper 2014-6https://www.bankofcanada.ca/wp-content/uploads/2014/10/dp2014-6.pdfIntegrating Uncertainty and Monetary Policy-Making: A Practitioner’s PerspectiveStephen S. PolozOctober 2014CC5C50EE3E37E5E6E61Predicting Financial Stress Events: A Signal Extraction Approach
https://www.bankofcanada.ca/2014/09/working-paper-2014-37/
The objective of this paper is to propose an early warning system that can predict the likelihood of the occurrence of financial stress events within a given period of time. To achieve this goal, the signal extraction approach proposed by Kaminsky, Lizondo and Reinhart (1998) is used to monitor the evolution of a number of economic indicators that tend to exhibit an unusual behaviour in the periods preceding a financial stress event.2014-09-04T09:14:36+00:00enPredicting Financial Stress Events: A Signal Extraction Approach2014-09-04Econometric and statistical methodsFinancial stabilityWorking Paper 2014-37https://www.bankofcanada.ca/wp-content/uploads/2014/09/wp2014-37.pdfPredicting Financial Stress Events: A Signal Extraction ApproachIan ChristensenFuchun LiAugust 2014CC1C14C4EE3E37E4E47FF3F36F37GG0G01G1G17Removal of the Unwinding Provisions in the Automated Clearing Settlement System: A Risk Assessment
https://www.bankofcanada.ca/2014/07/discussion-paper-2014-4/
A default in the Automated Clearing Settlement System (ACSS) occurs when a Direct Clearer is unable to settle its final obligation.2014-07-23T11:34:02+00:00enRemoval of the Unwinding Provisions in the Automated Clearing Settlement System: A Risk Assessment2014-07-23Financial stabilityPayment clearing and settlement systemsDiscussion Paper 2014-4https://www.bankofcanada.ca/wp-content/uploads/2014/07/dp2014-4.pdfRemoval of the Unwinding Provisions in the Automated Clearing Settlement System: A Risk AssessmentNicholas LabelleVarya TaylorJuly 2014CC1C15GG0G01G2G3Information, Amplification and Financial Crisis
https://www.bankofcanada.ca/2014/07/working-paper-2014-30/
We propose a parsimonious model of information choice in a global coordination game of regime change that is used to analyze debt crises, bank runs or currency attacks. A change in the publicly available information alters the uncertainty about the behavior of other investors.2014-07-17T07:38:29+00:00enInformation, Amplification and Financial Crisis2014-07-17Financial institutionsFinancial stabilityWorking Paper 2014-30https://www.bankofcanada.ca/wp-content/uploads/2014/07/wp2014-30.pdfInformation, Amplification and Financial CrisisAli KakhbodToni AhnertJuly 2014DD8D83GG0G01Filling in the Blanks: Network Structure and Interbank Contagion
https://www.bankofcanada.ca/2014/06/working-paper-2014-26/
The network pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often unobserved, and maximum entropy serves as the leading method for estimating counterparty exposures.2014-06-18T11:49:45+00:00enFilling in the Blanks: Network Structure and Interbank Contagion2014-06-18Econometric and statistical methodsFinancial institutionsFinancial stabilityWorking Paper 2014-26https://www.bankofcanada.ca/wp-content/uploads/2014/06/wp2014-26.pdfFilling in the Blanks: Network Structure and Interbank ContagionKartik AnandBen CraigGoetz von PeterJune 2014CC6C63DD8D85GG2G21LL1L14Stress Testing the Canadian Banking System: A System-Wide Approach
https://www.bankofcanada.ca/wp-content/uploads/2014/06/fsr-june2014-anand.pdf
Stress testing is an important tool used by financial authorities and entities around the world to evaluate potential risks to the financial system. Kartik Anand, Guillaume Bédard-Pagé and Virginie Traclet discuss different stress-testing approaches, with emphasis on the innovative and analytically rigorous model developed by the Bank of Canada: the MacroFinancial Risk Assessment Framework (MFRAF). They also present the stress-test results obtained in the context of the 2013 Canada Financial Sector Assessment Program led by the International Monetary Fund, including the important contributions made by the use of MFRAF in the exercise.2014-06-12T10:30:47+00:00enStress Testing the Canadian Banking System: A System-Wide Approach2014-06-12Interest on Cash, Fundamental Value Process and Bubble Formation on Experimental Asset Markets
https://www.bankofcanada.ca/2014/05/working-paper-2014-18/
We study the formation of price bubbles on experimental asset markets where cash earns interest. There are two main conclusions.2014-05-08T16:18:40+00:00enInterest on Cash, Fundamental Value Process and Bubble Formation on Experimental Asset Markets2014-05-08Asset pricingFinancial marketsFinancial stabilityWorking Paper 2014-18https://www.bankofcanada.ca/wp-content/uploads/2014/05/wp2014-18.pdfInterest on Cash, Fundamental Value Process and Bubble Formation on Experimental Asset MarketsGiovanni GiustiJanet Hua JiangYiping XuMay 2014CC9C90GG1G10Do Sunspots Matter? Evidence from an Experimental Study of Bank Runs
https://www.bankofcanada.ca/2014/03/working-paper-2014-12/
A "sunspot" is a variable that has no direct impact on the economy’s fundamental condition, such as preferences, endowments or technologies, but may nonetheless affect economic outcomes through the expectations channel as a coordination device. This paper investigates how people react to sunspots in the context of a bank-run game in a controlled laboratory environment.2014-03-25T14:23:43+00:00enDo Sunspots Matter? Evidence from an Experimental Study of Bank Runs2014-03-25Financial marketsFinancial stabilityWorking Paper 2014-12https://www.bankofcanada.ca/wp-content/uploads/2014/03/wp2014-12.pdfDo Sunspots Matter? Evidence from an Experimental Study of Bank RunsJasmina ArifovicJanet Hua JiangMarch 2014CC9C91C92DD8D80EE5E58GG2G20