Darcey McVanel is the Director of the Market Structure and Regulation Division in the Bank of Canada’s Financial Markets Department. In this role, she manages a division responsible for conducting high-quality analysis and research related to financial market structure and regulation. She has extensive experience in the area of financial market infrastructures, and has contributed to reports by the BIS’s Committee on Payment and Markets Infrastructures. She also has expertise in broad financial system issues including financial institutions, credit markets, and the structure of the Canadian financial system. 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.