G20 - General - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T06:04:26+00:00Decomposing 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 2024GG1G10G11G2G20Mapping 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 system2024-01-15Understanding 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 2023CC6C63GG0G01G1G10G2G20QQ5Q54Central Bank Crisis Interventions: A Review of the Recent Literature on Potential Costs
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-30/
Central banks’ actions to stabilize financial markets and implement monetary policy during crises may come with costs and side effects. We provide a literature review of these costs and discuss measures that may mitigate the negative impacts of crisis actions.2023-12-11T13:33:31+00:00enCentral Bank Crisis Interventions: A Review of the Recent Literature on Potential Costs2023-12-11Central bank researchFinancial institutionsFinancial marketsFinancial stabilityLender of last resortStaff Discussion Paper 2023-30https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-30.pdfCentral Bank Crisis Interventions: A Review of the Recent Literature on Potential CostsPatrick AldridgeDavid CimonRishi ValaDecember 2023EE5E58GG1G10G2G20Intermediary Market Power and Capital Constraints
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-51/
We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.2023-10-04T14:39:48+00:00enIntermediary Market Power and Capital Constraints2023-10-04Financial institutionsMarket structure and pricingStaff Working Paper 2023-51https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-51.pdfStaff Working Paper 2023-51Jason AllenMilena WittwerOctober 2023DD4D40D44GG1G12G18G2G20LL1L10Exporting and Investment Under Credit Constraints
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-10/
We examine the relationship between firms’ performance and credit constraints affecting export market entry. Using administrative Canadian firm-level data, our findings show that new exporters (a) increase their productivity, (b) raise their leverage ratio and (c) increase investment. We estimate that 48 percent of Canadian manufacturers face binding credit constraints when deciding whether to enter export markets.2023-02-10T14:26:13+00:00enExporting and Investment Under Credit Constraints2023-02-10Econometric and statistical methodsFirm dynamicsInternational topicsProductivityStaff Working Paper 2023-10https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-10.pdfExporting and Investment Under Credit ConstraintsKim HuynhRobert PetruniaJoel RodrigueWalter SteingressFebruary 2023FF1F10F14F3F36GG2G20G28G3G32Geographical and Cultural Proximity in Retail Banking
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-2/
This paper measures how both geographical and cultural proximity of bank branches affect household credit choice and pricing. For credit products that require high levels of ex-ante screening, we find that both proximities can complement each other in reducing the cost of providing soft information, thereby increasing credit access.2023-01-05T07:36:06+00:00enGeographical and Cultural Proximity in Retail Banking2023-01-05Credit and credit aggregatesFinancial institutionsFinancial servicesStaff Working Paper 2023-2https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-2.pdfGeographical and Cultural Proximity in Retail BankingSantiago Carbo-ValverdeHéctor Pérez SaizHongyu XiaoJanuary 2023DD8D82D83GG2G20G21RR2R22ZZ1Z10Z13Fixed-income dealing and central bank interventions
https://www.bankofcanada.ca/2022/06/staff-analytical-note-2022-9/
We summarize the theoretical model of central bank asset purchases developed in Cimon and Walton (2022). The model helps us understand how asset purchases ease pressures on investment dealers to restore market conditions in a crisis.2022-06-30T15:00:43+00:00enFixed-income dealing and central bank interventions2022-06-30Asymmetric Systemic Risk
https://www.bankofcanada.ca/2022/05/staff-working-paper-2022-19/
Bank regulation presumes risks spill over more easily from large banks to the banking system than vice versa. Interestingly, we observe this is not the case. We find that the capacity to transmit risk is larger in the system-to-bank direction, leading to an increased default risk.2022-05-02T15:43:14+00:00enAsymmetric Systemic Risk2022-05-02Financial institutionsFinancial stabilityFinancial system regulation and policiesStaff Working Paper 2022-19https://www.bankofcanada.ca/wp-content/uploads/2022/05/swp2022-19.pdfStaff Working Paper 2022-19Radoslav RaykovConsuelo Silva-BustonMay 2022GG1G10G2G20Central Bank Liquidity Facilities and Market Making
https://www.bankofcanada.ca/2022/03/staff-working-paper-2022-9/
We create a theoretical model of central bank asset purchases. The model helps explain how, in a crisis, these purchases ease pressures on investment dealers.2022-03-04T11:03:17+00:00enCentral Bank Liquidity Facilities and Market Making2022-03-04Coronavirus disease (COVID-19)Economic modelsFinancial institutionsFinancial marketsMarket structure and pricingStaff Working Paper 2022-9https://www.bankofcanada.ca/wp-content/uploads/2022/03/swp2022-9.pdfCentral Bank Liquidity Facilities and Market MakingDavid CimonAdrian WaltonMarch 2022GG1G10G2G20LL1L10