Darcey McVanel is the Director of the Retail Payments Modernization Division in the Bank of Canada’s Funds Management and Banking Department. In this role, she manages a division responsible for developing strategy and policy to support the Bank’s role in Payments Modernization. She has extensive experience in the areas of financial market infrastructures, financial institutions, financial and credit markets. Darcey obtained her Masters in Economics from Queen’s University.
The authors empirically analyze the price-setting behaviour of the major Canadian banks in the residential mortgage market over the period 1991–2007. They use weekly posted prices of the major mortgage providers to study the degree of competition in mortgage price setting.
The proportion of assets held by the average Canadian firm in the form of cash has increased steadily since the early 1990s, and is now roughly twice as large as in 1990. The literature has established that the cash-holding behaviour of firms is highly correlated with financial constraints and firm characteristics.