G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:04:50+00:00Supporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-31/
While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face.2023-12-18T14:46:24+00:00enSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks2023-12-18Central bank researchClimate changeFinancial marketsStaff Discussion Paper 2023-31https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-31.pdfSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central BanksKaren McGuinnessDecember 2023DD5D53EE5E58E6E63GG3G32QQ5Q54Is Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps
https://www.bankofcanada.ca/2023/07/staff-working-paper-2023-38/
We study whether the credit derivatives of firms reflect the risk from climate transition. We find that climate transition risk has asymmetric and significant economic impacts on the credit risk of more vulnerable firms, and negligible effects on other firms.2023-07-17T13:28:18+00:00enIs Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps2023-07-17Climate changeCredit risk managementEconometric and statistical methodsStaff Working Paper 2023-38https://www.bankofcanada.ca/wp-content/uploads/2023/07/swp2023-38.pdfIs Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default SwapsAndrea UgoliniJuan C. ReboredoJavier Ojea FerreiroJuly 2023CC2C24GG1G12G3G32QQ5Q54Crowdfunding and Risk
https://www.bankofcanada.ca/2023/05/staff-working-paper-2023-28/
Crowdfunding may enable unique products to reach the consumer market. I model a crowdfunding technology that publicly screens consumer demand early in the production process. In this model, entrepreneurs like crowdfunding for risky projects where demand is uncertain, but not for large, safe projects or for projects where production costs are uncertain.2023-05-29T15:44:01+00:00enCrowdfunding and Risk2023-05-29Digital currencies and fintechFinancial marketsFinancial servicesStaff Working Paper 2023-28https://www.bankofcanada.ca/wp-content/uploads/2023/05/swp2023-28.pdfStaff Working Paper 2023-28David CimonMay 2023GG2G21G24G3G32Exporting 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 2023FF1F10F14F3F36GG2G20G28G3G32Considerations for the allocation of non-default losses by financial market infrastructures
https://www.bankofcanada.ca/2022/11/staff-analytical-note-2022-16/
Non-default losses of financial market infrastructures (FMIs) have gained attention due to their potential impacts on FMIs and FMI participants, and the lack of a common approach to address them. A key question is, who should absorb these losses?2022-11-03T12:32:09+00:00enConsiderations for the allocation of non-default losses by financial market infrastructures2022-11-03How does the Bank of Canada’s balance sheet impact the banking system?
https://www.bankofcanada.ca/2022/09/staff-analytical-note-2022-12/
We examine how changes in the Bank of Canada’s balance sheet impact the banking system. Quantitative easing contributed to an increase in the size of the banking system’s balance sheet and an improvement in bank liquidity coverage ratios. Quantitative tightening is expected to partially reverse these impacts. The banking system will have to adjust its liquidity management strategy in response.2022-09-22T10:00:41+00:00enHow does the Bank of Canada’s balance sheet impact the banking system?2022-09-22Financial Intermediaries and the Macroeconomy: Evidence from a High-Frequency Identification
https://www.bankofcanada.ca/2022/05/staff-working-paper-2022-24/
We provide empirical evidence of effects to the aggregate economy from surprises about financial intermediaries’ net worth based on a high-frequency identification strategy. We estimate that news of a 1% decline in intermediaries’ net worth leads to a 0.2%–0.4% decrease in the market value of nonfinancial firms.2022-05-20T15:46:50+00:00enFinancial Intermediaries and the Macroeconomy: Evidence from a High-Frequency Identification2022-05-20Asset pricingBusiness fluctuations and cyclesCredit and credit aggregatesFinancial institutionsFinancial marketsFinancial system regulation and policiesMonetary and financial indicatorsStaff Working Paper 2022-24https://www.bankofcanada.ca/wp-content/uploads/2022/05/swp2022-24.pdfStaff Working Paper 2022-24Pablo OttonelloWenting SongMay 2022EE3E32E4E44E5E51GG0G01G1G12G2G21G23G24G3G32Assessing Climate-Related Financial Risk: Guide to Implementation of Methods
https://www.bankofcanada.ca/2022/01/technical-report-120/
A pilot project on climate transition scenarios by the Bank of Canada and the Office of the Superintendent of Financial Institutions assessed climate-related credit and market risks. This report describes the project’s methodologies and provides guidance on implementing them.2022-01-14T12:00:37+00:00enAssessing Climate-Related Financial Risk: Guide to Implementation of Methods2022-01-14Climate changeCredit and credit aggregatesEconometric and statistical methodsFinancial stabilityTechnical Report 2022-120https://www.bankofcanada.ca/wp-content/uploads/2021/11/tr120.pdfHossein HosseiniCraig JohnstonCraig LoganMiguel MolicoXiangjin ShenMarie-Christine TremblayJanuary 2022CC5C53C8C83GG1G3G32Updated Methodology for Assigning Credit Ratings to Sovereigns
https://www.bankofcanada.ca/2021/11/staff-discussion-paper-2021-16/
We update the Bank of Canada’s credit rating methodology for sovereigns, including our approach to assessing their fiscal position and monetary policy flexibility. We also explicitly consider climate-related factors.2021-11-15T15:21:31+00:00enUpdated Methodology for Assigning Credit Ratings to Sovereigns2021-11-15Credit risk managementForeign reserves managementStaff Discussion Paper 2021-16https://www.bankofcanada.ca/wp-content/uploads/2021/11/sdp2021-16.pdfStaff Discussion Paper 2021-16Karim McDanielsNico PaleschSanjam SuriZacharie QuivigerJohn WalshNovember 2021FF3F31GG2G24G28G3G32A Q-Theory of Banks
https://www.bankofcanada.ca/2021/09/staff-working-paper-2021-44/
Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values.2021-09-24T14:28:26+00:00enA Q-Theory of Banks2021-09-24Financial institutionsFinancial stabilityFinancial system regulation and policiesStaff Working Paper 2021-44https://www.bankofcanada.ca/wp-content/uploads/2021/09/swp2021-44.pdfStaff Working Paper 2021-44Juliane BeganauSaki BigioJeremy MajerovitzMatías VieyraSeptember 2021EE4E44GG2G21G3G32G33