May 26, 2011
Results of the 26 May 2011 Term Repo Operation for Balance Sheet Management Purposes
Results of the Term Repo Operation for Balance Sheet Management Purposes
Posts
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May 25, 2011
Bank of Canada Announces Details of its Term Repo for Balance Sheet Management Purposes Operation
The Bank of Canada announced today that it will conduct a Term Repo Operation for Balance Sheet Management Purposes. -
May 19, 2011
The Changing Face of Risk in the Global Financial System
I know that risk is ever-present in your work, as you fulfill your commitments to the beneficiaries and sponsors of your pension plans. Important risks surround the investment performance of those plans, as well as the value of pension liabilities. -
May 19, 2011
Bank of Canada Review - Spring 2011
This special issue of the Review, “Lessons from the Financial Crisis,” examines the recent research on the role of liquidity in the financial system and on the public policy responses that aimed to restore stability to the financial system during the crisis and to foster economic recovery.
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May 19, 2011
Understanding and Measuring Liquidity Risk: A Selection of Recent Research
During the recent financial crisis, one of the forces set in motion by the initial losses on subprime-mortgage loans was a significant decline in the market liquidity of assets and in the ability of financial institutions to obtain funding in wholesale markets. In this article, the authors summarize recent research that clarifies the role of liquidity in destabilizing the financial system and examine the implications of this research for the recently announced financial system reforms, including Basel III. -
May 19, 2011
Unconventional Monetary Policy: The International Experience with Central Bank Asset Purchases
As part of their policy response to the financial crisis of 2007–09, central banks introduced numerous unprecedented monetary policy measures to provide monetary easing. This article defines and documents these measures, focusing on central bank asset purchases and their impact on central bank balance sheets. It then discusses the challenges of identifying the effects of these measures and explores possible exit strategies. The potential costs of these policies are also analyzed, as well as the broader implications for monetary policy frameworks. -
May 19, 2011
Lessons from the Use of Extraordinary Central Bank Liquidity Facilities
The recent crisis was characterized by widespread deterioration in funding conditions, as well as impairment of the mechanism through which liquidity is normally redistributed within the financial system. Central banks responded with extraordinary measures. This article examines the provision of liquidity by central banks during the crisis as they adapted their existing facilities and introduced new ones, while encouraging a return to private markets and mitigating moral hazard. A review of this experience illustrates the importance of clear principles for intervention, a flexible operating framework, and clear communication and co-operation by central banks. By exposing the degree of interdependence of financial institutions and markets, the crisis highlighted the need for reforms aimed at improving the infrastructure supporting core funding markets and the liquidity of individual institutions. -
May 19, 2011
Central Bank Collateral Policy: Insights from Recent Experience
The collateral policy of central banks played a critical role during the recent financial crisis, as they worked to bolster liquidity and alleviate the funding pressures facing financial institutions. This article examines central bank collateral policy and discusses three areas in which central banks can use their collateral policy to influence financial market practices: promoting greater transparency for securitized products, improving practices related to credit risk, and reducing procyclicality in the management of market risk. -
May 19, 2011
Supplementary article: Paying with Polymer: Developing Canada’s New Bank Notes
In this article, author Charles Spencer reviews the complex process of developing the new series, which represents a dramatic change for Canada. The leading-edge security features made possible by the new substrate, the cost savings of the move to a polymer base and the environmental advantages of the new notes are also examined. -
May 16, 2011
Canada in a Multi-Polar World
Governor Mark Carney discusses the forces that are transforming the global economic landscape and their implications for the Canadian economy.