G - Financial Economics - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T10:35:53+00:00CBDC: Banking and Anonymity
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-9/
We examine the optimal amount of user anonymity in a central bank digital currency in the context of bank lending. Anonymity, defined as the lender’s inability to discern an entrepreneur’s actions that enable fund diversion, influences the choice of payment instrument due to its impact on a bank’s lending decisions.2024-03-22T13:47:02+00:00enCBDC: Banking and Anonymity2024-03-22Digital currencies and fintechStaff Working Paper 2024-9https://www.bankofcanada.ca/wp-content/uploads/2024/03/swp2024-9.pdfStaff Working Paper 2024-9Yuteng ChengRyuichiro IzumiMarch 2024EE4E42E5E58GG2G28Monetary Policy Transmission Through Shadow and Traditional Banks
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-8/
I investigate how monetary policy transmits to mortgage rates via the mortgage market concentration channel for both traditional and shadow banks in the United States from 2009 to 2019. On average, shadow and traditional banks exhibit only a slight disparity in transmitting monetary shocks to mortgage rates.2024-03-21T14:53:44+00:00enMonetary Policy Transmission Through Shadow and Traditional Banks2024-03-21Financial institutionsInterest ratesMonetary policy transmissionStaff Working Paper 2024-8https://www.bankofcanada.ca/wp-content/uploads/2024/03/swp2024-8.pdfStaff Working Paper 2024-8Amina EnkhboldMarch 2024EE4E44E5E52GG2G21What has been putting upward pressure on CORRA?
https://www.bankofcanada.ca/2024/03/staff-analytical-note-2024-4/
From the autumn of 2023 into early 2024, the Canadian Overnight Repo Rate Average (CORRA), a measure of the cost of overnight general collateral Canadian dollar repos, was consistently well above the Bank’s target for the overnight rate. We find that, among several factors, long bond positions that require repo financing are the main driver of the recent upward pressure on CORRA.2024-03-21T09:35:25+00:00enWhat has been putting upward pressure on CORRA?2024-03-21Decomposing Large Banks’ Systemic Trading Losses
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-6/
Do banks realize simultaneous trading losses because they invest in the same assets, or because different assets are subject to the same macro shocks? This paper decomposes the comovements of bank trading losses into two orthogonal channels: portfolio overlap and common shocks.2024-03-07T09:53:20+00:00enDecomposing Large Banks’ Systemic Trading Losses2024-03-07Financial institutionsFinancial stabilityStaff Working Paper 2024-6https://www.bankofcanada.ca/wp-content/uploads/2024/03/swp2024-6.pdfDecomposing Large Banks’ Systemic Trading LossesRadoslav RaykovMarch 2024GG1G10G11G2G20The Role of Long-Term Contracting in Business Lending
https://www.bankofcanada.ca/2024/02/staff-working-paper-2024-2/
This paper examines inefficiencies arising from a lack of long-term contracting in small business lending in China.2024-02-02T14:43:15+00:00enThe Role of Long-Term Contracting in Business Lending2024-02-02Financial institutionsStaff Working Paper 2024-2https://www.bankofcanada.ca/wp-content/uploads/2024/02/swp2024-02.pdfThe Role of Long-Term Contracting in Business LendingPhoebe TianFebruary 2024DD8D83D86GG2G21LL1L14L2L26Market structure of cryptoasset exchanges: Introduction, challenges and emerging trends
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-2/
This paper provides an overview of cryptoasset exchanges. We contrast their design with exchanges in traditional financial markets and discuss emerging regulatory trends and innovations aimed at solving the problems cryptoasset exchanges face.2024-01-30T13:56:10+00:00enMarket structure of cryptoasset exchanges: Introduction, challenges and emerging trends2024-01-30Mapping out the implications of climate transition risk for the financial system
https://www.bankofcanada.ca/2024/01/mapping-out-the-implications-of-climate-transition-risk-for-the-financial-system/
We develop a new analytical framework to understand the system-wide implications of climate transition risk. When applying this framework to Canadian data, we find that interconnections within the financial sector could amplify the direct effects of climate transition risk on financial entities.2024-01-15T15:00:53+00:00enMapping out the implications of climate transition risk for the financial system2024-01-15Flood risk and residential lending
https://www.bankofcanada.ca/2024/01/flood-risk-and-residential-lending/
We present key findings of a recent study that evaluates the credit risk that flooding poses to the residential lending activities of Canadian banks and credit unions. Results show that such risk currently appears modest but could become larger with climate change.2024-01-15T15:00:26+00:00enFlood risk and residential lending2024-01-15Extreme Weather and Low-Income Household Finance: Evidence from Payday Loans
https://www.bankofcanada.ca/2024/01/staff-working-paper-2024-1/
This paper explores the impact of extreme weather exposures on the financial outcomes of low-income households. Our findings highlight the heightened financial vulnerability of low-income households to environmental shocks and underscore the need for targeted policies.2024-01-08T12:15:49+00:00enExtreme Weather and Low-Income Household Finance: Evidence from Payday Loans2024-01-08Climate changeCredit and credit aggregatesStaff Working Paper 2024-1https://www.bankofcanada.ca/wp-content/uploads/2024/01/swp2024-1.pdfExtreme Weather and Low-Income Household Finance: Evidence from Payday LoansShihan XieVictoria Wenxin XieXu ZhangJanuary 2024GG5QQ5Q54Modelling Canadian mortgage debt and payments in a semi-structural model
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-1/
We show how Canadian mortgage debt dynamics can be modelled in a semi-structural macroeconomic model, such as the Bank of Canada’s LENS. The model we propose accounts for Canada’s unique mortgage debt structure.2024-01-08T11:16:48+00:00enModelling Canadian mortgage debt and payments in a semi-structural model2024-01-08