G28 - Government Policy and Regulation - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T11:40:32+00:00Macroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability?
https://www.bankofcanada.ca/2018/11/staff-working-paper-2018-55/
Can macroprudential foreign exchange (FX) regulations on banks reduce the financial and macroeconomic vulnerabilities created by borrowing in foreign currency? To evaluate the effectiveness and unintended consequences of macroprudential FX regulations, we develop a parsimonious model of bank and market lending in domestic and foreign currency and derive four predictions.2018-11-15T09:23:24+00:00enMacroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability?2018-11-15Exchange ratesFinancial institutionsFinancial system regulation and policiesInternational financial marketsStaff Working Paper 2018-55https://www.bankofcanada.ca/wp-content/uploads/2018/11/swp2018-55.pdfMacroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability?Toni AhnertKristin ForbesChristian FriedrichDennis ReinhardtNovember 2018FF3F32F34GG1G15G2G21G28The Impact of Recent Policy Changes on the Canadian Mortgage Market
https://www.bankofcanada.ca/2018/11/staff-analytical-note-2018-35/
Recent policy changes are having a clear impact on the mortgage market. The number of new, highly indebted borrowers has fallen, and overall mortgage activity has slowed significantly.2018-11-14T08:00:05+00:00enThe Impact of Recent Policy Changes on the Canadian Mortgage Market2018-11-14Calibrating the Magnitude of the Countercyclical Capital Buffer Using Market-Based Stress Tests
https://www.bankofcanada.ca/2018/11/staff-working-paper-2018-54/
How much capital do banks need as a buffer to absorb severe shocks? By using historical stock market data, market-based stress tests help estimate the magnitude of capital buffers necessary to absorb severe but plausible shocks.2018-11-06T15:19:51+00:00enCalibrating the Magnitude of the Countercyclical Capital Buffer Using Market-Based Stress Tests2018-11-06Financial institutionsFinancial stabilityFinancial system regulation and policiesStaff Working Paper 2018-54https://www.bankofcanada.ca/wp-content/uploads/2018/11/swp2018-54.pdfCalibrating the Magnitude of the Countercyclical Capital Buffer Using Market-Based Stress TestsMaarten van OordtNovember 2018GG1G10G2G21G28Should Bank Capital Regulation Be Risk Sensitive?
https://www.bankofcanada.ca/2018/09/staff-working-paper-2018-48/
We present a simple model to study the risk sensitivity of capital regulation. A banker funds investment with uninsured deposits and costly capital, where capital resolves a moral hazard problem in the banker’s choice of risk.2018-09-17T17:34:13+00:00enShould Bank Capital Regulation Be Risk Sensitive?2018-09-17Financial institutionsFinancial system regulation and policiesStaff Working Paper 2018-48https://www.bankofcanada.ca/wp-content/uploads/2018/09/swp2018-48.pdfShould Bank Capital Regulation Be Risk Sensitive?Toni AhnertJames ChapmanCarolyn A. WilkinsSeptember 2018GG2G21G28Prudential Liquidity Regulation in Banking—A Literature Review
https://www.bankofcanada.ca/2018/07/staff-discussion-paper-2018-8/
Prudential liquidity requirements are a relatively recent regulatory tool on the international front, introduced as part of the Basel III accord in the form of a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR). I first discuss the rationale for regulating bank liquidity by highlighting the market failures that it addresses while reviewing key theoretical contributions to the literature on the motivation for prudential liquidity regulation.2018-07-25T12:07:45+00:00enPrudential Liquidity Regulation in Banking—A Literature Review2018-07-25Financial institutionsFinancial system regulation and policiesStaff Discussion Paper 2018-8https://www.bankofcanada.ca/wp-content/uploads/2018/07/sdp2018-8.pdfPrudential Liquidity Regulation in Banking—A Literature ReviewAdi MordelJuly 2018GG2G21G28The Characteristics of Uninsured Mortgages and their Securitization Potential
https://www.bankofcanada.ca/2018/07/staff-analytical-note-2018-24/
Following changes to housing finance policies that target insured mortgages, uninsured mortgage credit has been growing. This robust growth creates a larger pool of mortgages that may be suitable for private-label residential mortgage-backed securities (RMBS).2018-07-18T09:35:29+00:00enThe Characteristics of Uninsured Mortgages and their Securitization Potential2018-07-18The Bank of Canada’s Financial System Survey
https://www.bankofcanada.ca/wp-content/uploads/2018/06/fsr-june18-bedard-page.pdf
This report presents the details of a new semi-annual survey that will improve the Bank of Canada’s surveillance across the financial system and deepen efforts to engage with financial system participants. The survey collects expert opinions on the risks to and resilience of the Canadian financial system as well as on emerging trends and financial innovations. The report presents an overview of the survey and provides high-level results from the spring 2018 survey.2018-06-07T11:49:39+00:00enThe Bank of Canada’s Financial System Survey2018-06-07Covered Bonds as a Source of Funding for Banks’ Mortgage Portfolios
https://www.bankofcanada.ca/wp-content/uploads/2018/06/fsr-june18-ahnert.pdf
The author traces developments in the Canadian covered bond market. Covered bonds could be a valuable way to provide a stable and diverse source of funding, particularly for smaller banks. However, higher issuance could increase banks’ vulnerability to liquidity stress, with implications for the broader financial system. The author argues that these benefits and challenges can be balanced in a well-designed policy framework.2018-06-07T11:46:21+00:00enCovered Bonds as a Source of Funding for Banks’ Mortgage Portfolios2018-06-07Establishing a Resolution Regime for Canada’s Financial Market Infrastructures
https://www.bankofcanada.ca/wp-content/uploads/2018/06/fsr-june18-woodman.pdf
This report highlights how an effective resolution regime promotes financial stability. It does this by ensuring that financial market infrastructures (FMIs) would be able to continue to provide their critical functions during a period of stress when an FMI’s own recovery measures were failing. The report explains the Bank of Canada’s new role as the resolution authority for FMIs, which will further bolster financial system resilience.2018-06-07T11:17:49+00:00enEstablishing a Resolution Regime for Canada’s Financial Market Infrastructures2018-06-07Interest Rate and Renewal Risk for Mortgages
https://www.bankofcanada.ca/2018/06/staff-analytical-note-2018-18/
In this note, we explore two types of risk faced by holders of mortgages and home equity lines of credit (HELOCs) in the context of rising interest rates: interest rate risk and renewal risk.2018-06-05T14:04:41+00:00enInterest Rate and Renewal Risk for Mortgages2018-06-05