Guillaume Bédard-Pagé is Director of the Market Risks and Vulnerabilities division in the Bank of Canada’s Financial Markets Department. In this capacity, he leads a team responsible for conducting analysis and research on financial markets to identify risks and vulnerabilities that could have implications for the financial system or the macro economy.
Guillaume joined the Bank in 2009 in the Financial Stability Department. He is financial stability expert with specific knowledge of financial institutions, shadow banking, institutional investors and stress testing methods. He also represents the Bank on international working groups.
A native of Quebec city, Guillaume holds a M.Sc. in Finance from Laval University and the CFA designation.
The authors review the eight largest public pension funds in Canada. These funds are an important source of retirement income for Canadians. They are also significant investors, with net assets under management of over $1 trillion. The authors outline the investment strategies of the funds and how they interact with financial institutions and participate in financial markets. They also discuss the ways in which the funds’ risk-management frameworks could contribute to financial system stability and how they minimize potential vulnerabilities.
Stress testing is an important tool used by financial authorities and entities around the world to evaluate potential risks to the financial system. Kartik Anand, Guillaume Bédard-Pagé and Virginie Traclet discuss different stress-testing approaches, with emphasis on the innovative and analytically rigorous model developed by the Bank of Canada: the MacroFinancial Risk Assessment Framework (MFRAF). They also present the stress-test results obtained in the context of the 2013 Canada Financial Sector Assessment Program led by the International Monetary Fund, including the important contributions made by the use of MFRAF in the exercise.