What effect do financial intermediaries have on the economy? We develop a strategy to isolate the effects of financial shocks on the economy using high-frequency data. Our findings show that intermediaries have a sizeable impact on nonfinancial firms—particularly those with high default risk and low liquidity.
A pilot project on climate transition scenarios by the Bank of Canada and the Office of the Superintendent of Financial Institutions assessed climate-related credit and market risks. This report describes the project’s methodologies and provides guidance on implementing them.