F3 - International Finance
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The Countercyclical Capital Buffer and International Bank Lending: Evidence from Canada
We examine the impact of the CCyB on foreign lending activities of Canadian banks. We show that the announcement of a tightening in another country’s CCyB leads to a decrease in the growth rate of cross-border lending between Canadian banks and borrowers in that other country. -
Updated Methodology for Assigning Credit Ratings to Sovereigns
We update the Bank of Canada’s credit rating methodology for sovereigns, including our approach to assessing their fiscal position and monetary policy flexibility. We also explicitly consider climate-related factors.