Kartik Anand - Bank Publications

• Asset Encumbrance, Bank Funding and Financial Fragility

  Staff working paper 2016-16 Kartik Anand, Prasanna Gai, James Chapman, Toni Ahnert

  In this piece we show that a limit on the level of asset encumbrance and minimum capital requirements are effective tools for minimizing the incentive for banks to take excessive risk.

  Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D82, G, G0, G01, G2, G21, G28 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Financial system regulation and oversight
• June 12, 2014

  Stress Testing the Canadian Banking System: A System-Wide Approach

  Financial System Review - June 2014 Kartik Anand, Guillaume Bédard-Pagé, Virginie Traclet

  Stress testing is an important tool used by financial authorities and entities around the world to evaluate potential risks to the financial system. Kartik Anand, Guillaume Bédard-Pagé and Virginie Traclet discuss different stress-testing approaches, with emphasis on the innovative and analytically rigorous model developed by the Bank of Canada: the MacroFinancial Risk Assessment Framework (MFRAF). They also present the stress-test results obtained in the context of the 2013 Canada Financial Sector Assessment Program led by the International Monetary Fund, including the important contributions made by the use of MFRAF in the exercise.

  Content Type(s): Publications, Financial System Review articles JEL Code(s): C, C6, C63, G, G0, G01, G2, G21