Financial institutions - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T07:03:25+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 2018FF3F32F34GG1G15G2G21G28Modelling the Macrofinancial Effects of a House Price Correction in Canada
https://www.bankofcanada.ca/2018/11/staff-analytical-note-2018-36/
We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline.2018-11-14T09:00:37+00:00enModelling the Macrofinancial Effects of a House Price Correction in Canada2018-11-14The 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 Market2018-11-14The Framework for Risk Identification and Assessment
https://www.bankofcanada.ca/2018/11/technical-report-113/
Risk assessment models are an important component of the Bank’s analytical tool kit for assessing the resilience of the financial system. We describe the Framework for Risk Identification and Assessment (FRIDA), a suite of models developed at the Bank of Canada to quantify the impact of financial stability risks to the broader economy and a range of financial system participants (households, businesses and banks).2018-11-13T11:51:05+00:00enThe Framework for Risk Identification and Assessment2018-11-13Economic modelsFinancial institutionsFinancial stabilityHousingTechnical Report 113https://www.bankofcanada.ca/wp-content/uploads/2018/11/tr113.pdfThe Framework for Risk Identification and AssessmentCameron MacDonaldVirginie TracletNovember 2018CC3C5C6C7DD1EE0E00E2E27E3E37E4E47GG0G2G21Calibrating 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 2018GG1G10G2G21G28Multibank Holding Companies and Bank Stability
https://www.bankofcanada.ca/2018/10/staff-working-paper-2018-51/
This paper studies the relationship between bank holding company affiliation and the individual and systemic risk of banks. Using the 2005 hurricane season in the US as an exogenous shock to bank balance sheets, we show that banks that are part of a holding parent company are more resilient than independent banks.2018-10-25T13:01:44+00:00enMultibank Holding Companies and Bank Stability2018-10-25Financial institutionsFinancial stabilityStaff Working Paper 2018-51https://www.bankofcanada.ca/wp-content/uploads/2018/10/swp2018-51.pdfMultibank Holding Companies and Bank StabilityRadoslav RaykovConsuelo Silva-BustonOctober 2018GG1G2Government of Canada Fixed-Income Market Ecology
https://www.bankofcanada.ca/2018/09/staff-discussion-paper-2018-10/
This discussion paper is the third in the Financial Markets Department’s series on the structure of Canadian financial markets. These papers are called “ecologies” because they study the interactions among market participants, infrastructures, regulations and the terms of the traded contract itself.2018-09-20T11:25:52+00:00enGovernment of Canada Fixed-Income Market Ecology2018-09-20Debt managementFinancial institutionsFinancial marketsFinancial servicesStaff Discussion Paper 2018-10https://www.bankofcanada.ca/wp-content/uploads/2018/09/sdp2018-10.pdfGovernment of Canada Fixed-Income Market EcologyLéanne Berger-SoucyCorey GarriottAndré UscheSeptember 2018GG1G10G2G20HH6H63Should 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 2018GG2G21G28Seeking Safety
https://www.bankofcanada.ca/2018/08/staff-working-paper-2018-41/
The scale of safe assets suggests a structural demand for a safe wealth share beyond transaction and liquidity roles. We study how investors achieve a reference wealth level by combining self-insurance and contingent liquidation of investment. Intermediaries improve upon autarky, insuring investors with poor self-insurance and limiting liquidation.2018-08-27T06:00:03+00:00enSeeking Safety2018-08-27Financial institutionsStaff Working Paper 2018-41https://www.bankofcanada.ca/wp-content/uploads/2018/08/swp2018-41.pdfSeeking SafetyToni AhnertEnrico PerottiAugust 2018GG2Prudential 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 2018GG2G21G28