James Chapman

Senior Research Director

James Chapman is the Senior Research Director in the Funds Management and Banking Department at the Bank of Canada. James received a Ph.D. in economics and a MSc in statistics from the University of Iowa in 2006. He joined the Bank of Canada as a senior analyst in that year. James’s primary research focus has been on interbank market and financial market infrastructure issues such as liquidity risk and credit risk in large-value payment systems as well as the efficiency of interbank markets. Recently James’s research focus has evolved to include research on fintech related topics. These topics include the use of distributed ledger technology in financial market infrastructure, specifically the Bank’s Project Jasper, as well as questions related to digital currencies such as Bitcoin, Ethereum and initial coin offerings. From March 2015 to October 2016 James was the research director at Payments Canada the operator of the core Canadian payments infrastructure.


Senior Research Director
Funds Management and Banking

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9


February 8, 2019

A Perspective on Crypto “Money”

From a central banking perspective, the monetary landscape 10 to 15 years from now could look radically different than it does today. This paper explores some important research and policy questions for a central bank regarding cryptoassets.

Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers

Staff Discussion Paper 2019-1 James Chapman, Carolyn A. Wilkins
The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries.

Should Bank Capital Regulation Be Risk Sensitive?

Staff Working Paper 2018-48 Toni Ahnert, James Chapman, Carolyn A. Wilkins
We present a simple model to study the risk sensitivity of capital regulation. A banker funds investment with uninsured deposits and costly capital, where capital resolves a moral hazard problem in the banker’s choice of risk.
May 25, 2017

Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?

This report describes a joint endeavour between public and private sectors to explore a wholesale payment system based on distributed ledger technology (DLT). They find that a stand-alone DLT system is unlikely to be as beneficial as a centralized payment system in terms of core operating costs; however, it could increase financial system efficiency as a result of integration with the broader financial market infrastructure.

Asset Encumbrance, Bank Funding and Financial Fragility

Staff Working Paper 2016-16 Kartik Anand, Prasanna Gai, James Chapman, Toni Ahnert
In this piece we show that a limit on the level of asset encumbrance and minimum capital requirements are effective tools for minimizing the incentive for banks to take excessive risk.

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Journal Articles

  • "Efficiency and Bargaining Power in the Interbank Loan Market
    (with Jason Allen, Federico Echenique and Matthew Shum), International Economic Review, May 2016, vol. 57(2), p. 691-716.
  • “Central Bank Haircut Policy”
    (with Jonathan Chiu and Miguel Molico) Annals of Finance, Vol. 7, No. 3, (August 2011), pages 319-348
  • “A Model of Tiered Settlement Networks”
    (with Jonathan Chiu and Miguel Molico) Journal of Money, Credit and Banking, Forthcoming
  • “Rediscounting Under Aggregate Risk with Moral Hazard”
    (with Antoine Martin) Journal of Money, Credit and Banking, Forthcoming
  • "Bounding Revenue Comparisons across Multi-Unit Auction Formats under ?-Best Response"
    (with David McAdams and Harry J. Paarsch) American Economic Review, Vol. 97, No. 2 (May 2007), pages 455-458.
  • "Which Bank is the 'Central' Bank? An Application of Markov Theory to the Canadian Large-Value Transfer System"
    (with Morten Bech and Rod Garratt), Journal of Monetary Economics, Vol. 57, No. 3 (April 2010), pages 352-363.

Other Research

Work in Progress

  • "Matching in the Interbank Market"


  • B.A. Economics Concordia University (1998)
  • M.A. Economics Concordia University (2001)
  • M.Sc Statistics University of Iowa (2006)
  • Ph.D. Economics University of Iowa (2006)

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