Posts

• December 8, 2025

  2026–28 Accessibility Plan

  At the Bank of Canada, our commitment to accessibility is rooted in our values, which guide us to include everyone.
• December 5, 2025

  Bank of Canada announces finalists for the eleventh annual Governor’s Challenge

  Media Relations Ottawa, Ontario

  The Bank of Canada has announced the five finalist teams in the 2025-26 edition of The Governor’s Challenge, a competition where university students simulate the role of advisor to the Bank’s Governing Council.

  Content Type(s): Press, Press releases

• Unintended consequences of liquidity regulation

  Staff analytical note 2025-28 Omar Abdelrahman, Josef Schroth

  When a bank holds a lot of safe assets, it is well situated to deal with funding stress. But when all banks hold a lot of safe assets, a pecuniary externality implies that their (wholesale) funding costs increase. This reduces banks’ ability to hold capital buffers and thus, paradoxically, increases the frequency of funding stress.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E44, E6, G, G2, G21, G28 Research Theme(s): Financial system, Financial institutions and intermediation, Financial system regulation and oversight

• Modelling the Sovereign Debt Strategy: A Practical Primer

  Staff discussion paper 2025-16 Nicolas Audet, Adam Epp, Jeffrey Gao, Joe Ning

  We provide a primer on the role of debt modelling in informing the sovereign debt issuance strategy and discuss how specific challenges faced by debt managers can influence model design decisions. These insights are supported by our experiences using the Canadian Debt Strategy Model to guide policy decisions.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G1, G11, G17, H, H6, H63, H68 Research Theme(s): Financial markets and funds management, Funds management, Models and tools, Economic models

• Anticipating changes in bank capital buffer requirements

  Staff analytical note 2025-27 Josef Schroth

  Time-varying capital buffer requirements are a powerful tool that allow bank regulators to avoid severe financial stress without the cost of imposing very high levels of capital. However, this tool is only effective if banks understand how it is used. I present a model that banks and financial market participants can use to anticipate how time-varying capital buffer requirements change over time.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E1, E13, E3, E32, E4, E44 Research Theme(s): Financial system, Financial institutions and intermediation, Financial system regulation and oversight

• Do Firms’ Sales Expectations Hit the Mark? Evidence from the Business Leaders’ Pulse

  Staff discussion paper 2025-15 Owen Gaboury, Farrukh Suvankulov, Mathieu Utting

  We analyze Canadian data from the Bank of Canada’s Business Leaders’ Pulse, examining firms’ sales growth expectations. We find that expected growth predicts outcomes, uncertainty influences forecast errors and revisions, and firms with weak past performance anticipate and experience weaker future growth. These results highlight the survey’s value for understanding business expectations.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C8, C83, D, D2, D22 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Real economy and forecasting

• AI Agents for Cash Management in Payment Systems

  Staff working paper 2025-35 Iñaki Aldasoro, Ajit Desai

  Can artificial intelligence (AI) think and act like a cash manager? In this paper we explore how generative AI agents can help manage liquidity, prioritize payments and optimize efficiency in real-time gross settlement systems.

  Content Type(s): Staff research, Staff working papers JEL Code(s): A, A1, A12, C, C7, D, D8, D83, E, E4, E42, E5, E58 Research Theme(s): Financial system, Financial system regulation and oversight, Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Structural challenges, Digitalization and productivity

• Transaction Costs, the Value of Convenience, and the Cross-Section of Safe Asset Returns

  Staff working paper 2025-34 Ragnar Juelsrud, Plamen Nenov, Fabienne Schneider, Olav Syrstad

  We study the cross-section of equilibrium returns on safe assets using a tractable asset pricing model with a micro-founded demand for liquidity and multiple safe assets with heterogeneous transaction costs. We test the main predictions of our theory using a novel measure of relative (in)convenience yields in the US Treasury market.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission

• The Dealer-to-Client Repo Market: A Buoy on a Swaying Sea

  Staff discussion paper 2025-14 Greg Adams, Evan Dudley, Jean-Sébastien Fontaine, Sofia Tchamova, Andreas Uthemann

  In 2024, the Canadian Overnight Repo Rate Average (CORRA) rose 7 basis points above the Bank of Canada’s target overnight rate as settlement balances declined and hedge fund borrowing increased by $30 billion, straining dealers’ balance sheets. Exercising market power, dealers raised rates, and as client activity grew, these higher rates increasingly influenced CORRAs deviation from target.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D4, D5, D53, E, E4, E43, E44, E5, E52, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation, Monetary policy, Monetary policy tools and implementation
• November 21, 2025

  Funds management

  We manage the Government of Canada’s bank accounts, conduct auctions of government securities and provide other financial services to the government.