G2 - Financial Institutions and Services - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T14:01:00+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 2024EE4E44E5E52GG2G21Decomposing 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 2024DD8D83D86GG2G21LL1L14L2L26Mapping 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 lending2024-01-15Procyclicality 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 payments2023-12-19