Financial institutions - Bank of Canada
https://www.bankofcanada.ca/rss-feeds/
Bank of Canada RSS Feedsen2024-03-29T05:37:35+00:00Procyclicality in Central Counterparty Margin Models: A Conceptual Tool Kit and the Key Parameters
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-34/
Regulators need to provide effective procyclicality guidance, and central counterparties must design and calibrate their margin systems and procyclicality frameworks appropriately. To serve these needs, we provide a novel conceptual tool kit. Further, we highlight that the focus should be on the key margin system parameters in determining procyclicality.2023-12-29T11:12:20+00:00enProcyclicality in Central Counterparty Margin Models: A Conceptual Tool Kit and the Key Parameters2023-12-29Coronavirus disease (COVID-19)Credit risk managementFinancial institutionsFinancial marketsFinancial stabilityFinancial system regulation and policiesStaff Discussion Paper 2023-34https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-34.pdfProcyclicality in Central Counterparty Margin Models: A Conceptual Tool Kit and the Key ParametersAlper OdabasiogluDecember 2023GG0G01G2G23G28Climate-Related Flood Risk to Residential Lending Portfolios in Canada
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-33/
We assess the potential financial risks of current and projected flooding caused by extreme weather events in Canada. We focus on the residential real estate secured lending (RESL) portfolios of Canadian financial institutions (FIs) because RESL portfolios are an important component of FIs’ balance sheets and because the assets used to secure such loans are immobile and susceptible to climate-related extreme weather events.2023-12-20T15:56:24+00:00enClimate-Related Flood Risk to Residential Lending Portfolios in Canada2023-12-20Central bank researchClimate changeCredit risk managementEconometric and statistical methodsFinancial institutionsFinancial stabilityStaff Discussion Paper 2023-33https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-33.pdfClimate-Related Flood Risk to Residential Lending Portfolios in CanadaCraig JohnstonGeneviève ValléeHossein HosseiniBrett LindsayMiguel MolicoMarie-Christine TremblayAidan WittsDecember 2023CC8C81GG2G21QQ5Q54Understanding the Systemic Implications of Climate Transition Risk: Applying a Framework Using Canadian Financial System Data
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-32/
Our study aims to gain insight on financial stability and climate transition risk. We develop a methodological framework that captures the direct effects of a stressful climate transition shock as well as the indirect—or systemic—implications of these direct effects. We apply this framework using data from the Canadian financial system.2023-12-20T14:44:11+00:00enUnderstanding the Systemic Implications of Climate Transition Risk: Applying a Framework Using Canadian Financial System Data2023-12-20Climate changeEconomic modelsFinancial institutionsFinancial marketsFinancial stabilityStaff Discussion Paper 2023-32https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-32.pdfUnderstanding the Systemic Implications of Climate Transition Risk: Applying a Framework Using Canadian Financial System DataGabriel BruneauJavier Ojea FerreiroAndrew PlummerMarie-Christine TremblayAidan WittsDecember 2023CC6C63GG0G01G1G10G2G20QQ5Q54The impact of higher interest rates on mortgage payments
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-19/
We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact.2023-12-19T14:33:41+00:00enThe impact of higher interest rates on mortgage payments2023-12-19Central Bank Crisis Interventions: A Review of the Recent Literature on Potential Costs
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-30/
Central banks’ actions to stabilize financial markets and implement monetary policy during crises may come with costs and side effects. We provide a literature review of these costs and discuss measures that may mitigate the negative impacts of crisis actions.2023-12-11T13:33:31+00:00enCentral Bank Crisis Interventions: A Review of the Recent Literature on Potential Costs2023-12-11Central bank researchFinancial institutionsFinancial marketsFinancial stabilityLender of last resortStaff Discussion Paper 2023-30https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-30.pdfCentral Bank Crisis Interventions: A Review of the Recent Literature on Potential CostsPatrick AldridgeDavid CimonRishi ValaDecember 2023EE5E58GG1G10G2G20Getting used to higher interest rates
https://www.bankofcanada.ca/2023/11/getting-used-to-higher-interest-rates/
Senior Deputy Governor Carolyn Rogers talks about why interest rates could settle at a higher level than Canadians are used to and why preparing early for that possible outcome is important.2023-11-09T14:56:23+00:00Getting used to higher interest rates2023-11-09Carolyn RogersFinancial stability in a world of higher interest rates
https://www.bankofcanada.ca/2023/11/financial-stability-in-a-world-of-higher-interest-rates/
Senior Deputy Governor Carolyn Rogers talks about financial stability in an era of higher interest rates.2023-11-09T11:45:54+00:00Financial stability in a world of higher interest rates2023-11-09Carolyn RogersEstimating the Appropriate Quantity of Settlement Balances in a Floor System
https://www.bankofcanada.ca/2023/10/staff-discussion-paper-2023-26/
This paper presents two complementary approaches to estimating the appropriate quantity of settlement balances needed to effectively operate monetary policy under a floor system in Canada.2023-10-13T12:36:33+00:00enEstimating the Appropriate Quantity of Settlement Balances in a Floor System2023-10-13Financial institutionsFinancial marketsFinancial system regulation and policiesMonetary policy implementationPayment clearing and settlement systemsStaff Discussion Paper 2023-26https://www.bankofcanada.ca/wp-content/uploads/2023/10/sdp2023-26.pdfEstimating the Appropriate Quantity of Settlement Balances in a Floor SystemNarayan BulusuMatthew McNeelyKaetlynd McRaeJonathan WitmerOctober 2023EE4E41E42E5E52E58GG2G21G28Three things we learned about the Lynx payment system
https://www.bankofcanada.ca/2023/10/staff-analytical-note-2023-14/
Canada transitioned to a new wholesale payment system, Lynx, in August 2021. Lynx is based on a real-time settlement model that eliminates credit risk in the system. This model can require more liquidity; however, Lynx’s design allows Canada’s wholesale payments to settle efficiently.2023-10-10T14:30:23+00:00enThree things we learned about the Lynx payment system2023-10-10Intermediary Market Power and Capital Constraints
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-51/
We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.2023-10-04T14:39:48+00:00enIntermediary Market Power and Capital Constraints2023-10-04Financial institutionsMarket structure and pricingStaff Working Paper 2023-51https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-51.pdfStaff Working Paper 2023-51Jason AllenMilena WittwerOctober 2023DD4D40D44GG1G12G18G2G20LL1L10