Financial stability - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T05:37:54+00:00Monetary Policy, Private Debt and Financial Stability Risks
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-59/
Can monetary policy be used to promote financial stability? We answer this question by estimating the impact of a monetary policy shock on private-sector leverage and the likelihood of a financial crisis. Impulse responses obtained from a panel VAR model of 18 advanced countries suggest that the debt-to-GDP ratio rises in the short run following an unexpected tightening in monetary policy.2016-12-19T13:17:39+00:00enMonetary Policy, Private Debt and Financial Stability Risks2016-12-19Credit and credit aggregatesFinancial stabilityMonetary policyMonetary policy transmissionStaff Working Paper 2016-59https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-59.pdfMonetary Policy, Private Debt and Financial Stability RisksGregory BauerEleonora GranzieraDecember 2016CC2C21C23EE5E52E58Release of the Financial System Review
https://www.bankofcanada.ca/2016/12/opening-statement-151216/
Press conference following the release of the Financial System Review.2016-12-15T11:15:31+00:00Release of the Financial System Review2016-12-15Stephen S. PolozToward More Resilient Markets: Over-the-Counter Derivatives Reform in Canada
https://www.bankofcanada.ca/wp-content/uploads/2016/12/fsr-december-2016-mueller.pdf
In Toward More Resilient Markets: Over-the-Counter Derivatives Reform in Canada, Michael Mueller and André Usche show that the implementation of derivatives market reforms in Canada is well under way and has lessened vulnerabilities. But accompanying changes to market structure have both positive and negative effects that require ongoing attention from authorities.2016-12-15T10:30:57+00:00enToward More Resilient Markets: Over-the-Counter Derivatives Reform in Canada2016-12-15The Rise of Mortgage Finance Companies in Canada: Benefits and Vulnerabilities
https://www.bankofcanada.ca/wp-content/uploads/2016/12/fsr-december-2016-coletti.pdf
The Rise of Mortgage Finance Companies in Canada: Benefits and Vulnerabilities, by Don Coletti, Marc-André Gosselin and Cameron MacDonald, examines the increased importance of mortgage finance companies (MFCs) in the Canadian mortgage market. The authors discuss the MFC business model, highlighting MFCs’ relationship with mortgage brokers and banks, as well as the benefits they bring to Canadian borrowers. The authors conclude with a discussion of the impact of MFCs on financial system vulnerabilities.2016-12-15T10:30:44+00:00enThe Rise of Mortgage Finance Companies in Canada: Benefits and Vulnerabilities2016-12-15Monitoring Shadow Banking in Canada: A Hybrid Approach
https://www.bankofcanada.ca/wp-content/uploads/2016/12/fsr-december-2016-chang.pdf
In Monitoring Shadow Banking in Canada: A Hybrid Approach, Bo Young Chang, Michael Januska, Gitanjali Kumar and André Usche discuss how lending that occurs outside the traditional banking system provides benefits to the economy but must be monitored carefully for potential financial sector vulnerabilities. They describe how the Bank defines and measures shadow banking and how it assesses vulnerabilities in the sector, using an approach that examines both markets and entities.2016-12-15T10:30:27+00:00enMonitoring Shadow Banking in Canada: A Hybrid Approach2016-12-15Bank Screening Heterogeneity
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-56/
Production efficiency and financial stability do not necessarily go hand in hand. With heterogeneity in banks’ abilities to screen borrowers, the market for loans becomes segmented and a self-competition mechanism arises. When heterogeneity increases, the intensive and extensive margins have opposite effects.2016-12-13T11:58:20+00:00enBank Screening Heterogeneity2016-12-13Financial institutionsFinancial stabilityFinancial system regulation and policiesStaff Working Paper 2016-56https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-56.pdfBank Screening HeterogeneityThibaut DupreyDecember 2016GG1G14G2G21LL1L13