Market structure and pricing

• January 16, 2025

  Back to normal for the balance sheet

  Speech summary Toni Gravelle VersaFi (formerly Women in Capital Markets) Toronto, Ontario

  Deputy Governor Toni Gravelle provides an update on when quantitative tightening will end and explains how the Bank of Canada will manage its balance sheet going forward.

  Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Market structure and pricing, Monetary policy implementation, Monetary policy transmission, Recent economic and financial developments
• January 16, 2025

  The end of quantitative tightening and what comes next

  Remarks Toni Gravelle VersaFi (formerly Women in Capital Markets) Toronto, Ontario

  Deputy Governor Toni Gravelle provides an update on when quantitative tightening will end and how the Bank of Canada will manage its balance sheet after that.

  Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Market structure and pricing, Monetary policy implementation, Monetary policy transmission, Recent economic and financial developments

• Non-Bank Dealing and Liquidity Bifurcation in Fixed-Income Markets

  Staff Working Paper 2025-2 Michael Brolley, David Cimon

  We model non-bank entry into fixed-income markets and state-dependent liquidity. Non-bank financial institutions improve liquidity more during normal times than in stress. Banks may become less reliable to marginal clients, exacerbating the difference in liquidity between normal and stressed times. Central bank lending during stress may limit this harmful division.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Financial institutions, Financial markets, Market structure and pricing JEL Code(s): G, G1, G10, G2, G20, G21, G23, L, L1, L10, L13, L14