Zhentong Lu - Latest - Bank of Canada
https://www.bankofcanada.ca/rss-feeds/
Bank of Canada RSS Feedsen2024-03-28T20:18:57+00:00Three 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 system2023-10-10Flagship Entry in Online Marketplaces
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-41/
In this paper, we empirically study how flagship entry in an online marketplace affects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by improving consumer perception for parts of the platform.2023-08-15T11:52:26+00:00enFlagship Entry in Online Marketplaces2023-08-15Economic modelsMarket structure and pricingStaff Working Paper 2023-41https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-41.pdfFlagship Entry in Online MarketplacesGinger Zhe JinZhentong LuXiaolu ZhouLu FangAugust 2023DD4LL1L8How Banks Create Gridlock to Save Liquidity in Canada's Large Value Payment System
https://www.bankofcanada.ca/2023/05/staff-working-paper-2023-26/
We show how participants in Canada’s new high-value payment system save liquidity by exploiting the new gridlock resolution arrangement. The findings have important implications for the design of these systems and shed light on financial institutions’ liquidity preference.2023-05-04T14:58:19+00:00enHow Banks Create Gridlock to Save Liquidity in Canada's Large Value Payment System2023-05-04Financial institutionsPayment clearing and settlement systemsStaff Working Paper 2023-26https://www.bankofcanada.ca/wp-content/uploads/2023/05/swp2023-26.pdfStaff Working Paper 2023-26Rodney J. GarrattZhentong LuPhoebe TianMay 2023EE4E42E5E58GG2G21From LVTS to Lynx: Quantitative Assessment of Payment System Transition
https://www.bankofcanada.ca/2023/04/staff-working-paper-2023-24/
We quantitatively assess the changes in participants’ payment behaviour from modernizing Canada's high-value payments system to Lynx. Our analysis suggests that Lynx's liquidity-saving mechanism encourages liquidity pooling and early payments submission, resulting in improved efficiency for participants but with slightly increased payment delays.2023-04-14T13:05:23+00:00enFrom LVTS to Lynx: Quantitative Assessment of Payment System Transition2023-04-14Financial institutionsFinancial servicesFinancial system regulation and policiesPayment clearing and settlement systemsStaff Working Paper 2023-24https://www.bankofcanada.ca/wp-content/uploads/2023/04/swp2023-24.pdfStaff Working Paper 2023-24Ajit DesaiZhentong LuHiru RodrigoJacob SharplesPhoebe TianNellie ZhangApril 2023CC1C10EE4E42GG2G28Transmission of Cyber Risk Through the Canadian Wholesale Payment System
https://www.bankofcanada.ca/2022/05/staff-working-paper-2022-23/
This paper studies how the impact of a cyber attack that paralyzes one or multiple banks' ability to send payments would transmit to other banks through the Canadian wholesale payment system. Based on historical payment data, we simulate a wide range of scenarios and evaluate the total payment disruption in the system.2022-05-16T11:11:07+00:00enTransmission of Cyber Risk Through the Canadian Wholesale Payment System2022-05-16Financial institutionsFinancial stabilityPayment clearing and settlement systemsStaff Working Paper 2022-23https://www.bankofcanada.ca/wp-content/uploads/2022/05/swp2022-23.pdfAnneke KosseZhentong LuMay 2022CC4C49EE4E42E47GG2G21Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System
https://www.bankofcanada.ca/2021/12/staff-working-paper-2021-64/
Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada.2021-12-17T16:20:19+00:00enQuantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System2021-12-17Financial institutionsFinancial system regulation and policiesPayment clearing and settlement systemsStaff Working Paper 2021-64https://www.bankofcanada.ca/wp-content/uploads/2021/12/swp2021-64.pdfStaff Working Paper 2021-64Neville ArjaniFuchun LiZhentong LuDecember 2021CC3EE4E42GG1G2G28Measuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market
https://www.bankofcanada.ca/2021/08/staff-working-paper-2021-40/
Salespeople are widely employed in many industries. We leverage a unique data set on retail sales from a leading Chinese cold-drink manufacturer and information on the firm’s salespeople assignment rule to measure the causal effect of salespeople on product revenue.2021-08-20T09:49:47+00:00enMeasuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market2021-08-20Labour marketsService sectorStaff Working Paper 2021-40https://www.bankofcanada.ca/wp-content/uploads/2021/08/swp2021-40.pdfHaofeng JinZhentong LuAugust 2021LL8L81MM3M5The Effects of Government Licensing on E-commerce: Evidence from Alibaba
https://www.bankofcanada.ca/2021/07/staff-working-paper-2021-32/
How does government licensing affect selling on online platforms? We examine the impact of China’s 2015 Food Safety Law on sellers and buyers on Alibaba, the largest e-commerce platform in that country.2021-07-05T08:42:01+00:00enThe Effects of Government Licensing on E-commerce: Evidence from Alibaba2021-07-05Market structure and pricingRecent economic and financial developmentsStaff Working Paper 2021-32https://www.bankofcanada.ca/wp-content/uploads/2021/07/swp2021-32.pdfThe Effects of Government Licensing on E-commerce: Evidence from AlibabaGinger Zhe JinZhentong LuXiaolu ZhouChunxiao LiJuly 2021DD8D82KK2K23LL5L8L81Examining the Impact of Home Purchase Restrictions on China’s Housing Market
https://www.bankofcanada.ca/2021/04/staff-working-paper-2021-18/
How do “cooling measures” in the housing market—policies aimed to stabilize prices—affect the market? We use a structural model of housing demand and price competition among developers to evaluate China’s home purchase restriction policies implemented in 2010–11.2021-04-07T12:30:51+00:00enExamining the Impact of Home Purchase Restrictions on China’s Housing Market2021-04-07HousingMarket structure and pricingStaff Working Paper 2021-18https://www.bankofcanada.ca/wp-content/uploads/2021/04/swp2021-18.pdfExamining the Impact of Home Purchase Restrictions on China’s Housing MarketZhentong LuSisi ZhangJian HongApril 2021OO1O18RR3R31R38Predicting Payment Migration in Canada
https://www.bankofcanada.ca/2020/09/staff-working-paper-2020-37/
Developments are underway to replace Canada’s two core payment systems with three new systems. We use a discrete choice model to predict migration patterns of end-users and financial institutions for future systems and discuss their policy implications.2020-09-14T15:02:48+00:00enPredicting Payment Migration in Canada2020-09-14Financial institutionsFinancial servicesFinancial stabilityFinancial system regulation and policiesPayment clearing and settlement systemsStaff Working Paper 2020-37https://www.bankofcanada.ca/wp-content/uploads/2020/09/swp2020-37.pdfPredicting Payment Migration in CanadaAnneke KosseZhentong LuGabriel XerriSeptember 2020CC3EE4E42GG1G2G28