Virginie Traclet was appointed Deputy Managing Director of the Financial Markets Department (FMD) in November 2021. In this capacity, she contributes to the strategic direction and management of the department and oversees the department’s analysis on issues related to monetary policy and data analytics. She joined FMD as Senior Director in December 2018, overseeing the department’s analysis of vulnerabilities and risks in the financial system. She was previously Director of the Model Development and Research Division and Director of the Financial Institutions Division in the Financial Stability Department. Virginie joined the Bank in 2002 as a Senior Economist and holds a PhD in Economics from the University of Rennes 1 (France).

Staff working papers

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Technical reports

The Framework for Risk Identification and Assessment

Technical Report No. 113 Cameron MacDonald, Virginie Traclet
Risk assessment models are an important component of the Bank’s analytical tool kit for assessing the resilience of the financial system. We describe the Framework for Risk Identification and Assessment (FRIDA), a suite of models developed at the Bank of Canada to quantify the impact of financial stability risks to the broader economy and a range of financial system participants (households, businesses and banks).
Content Type(s): Staff research, Technical reports Topic(s): Economic models, Financial institutions, Financial stability, Housing JEL Code(s): C, C3, C5, C6, C7, D, D1, E, E0, E00, E2, E27, E3, E37, E4, E47, G, G0, G2, G21

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Bank publications

Bank of Canada Review articles

May 19, 2011

Lessons from the Use of Extraordinary Central Bank Liquidity Facilities

The recent crisis was characterized by widespread deterioration in funding conditions, as well as impairment of the mechanism through which liquidity is normally redistributed within the financial system. Central banks responded with extraordinary measures. This article examines the provision of liquidity by central banks during the crisis as they adapted their existing facilities and introduced new ones, while encouraging a return to private markets and mitigating moral hazard. A review of this experience illustrates the importance of clear principles for intervention, a flexible operating framework, and clear communication and co-operation by central banks. By exposing the degree of interdependence of financial institutions and markets, the crisis highlighted the need for reforms aimed at improving the infrastructure supporting core funding markets and the liquidity of individual institutions.

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Financial System Hub articles

November 14, 2018

Financial System Resilience and House Price Corrections

We use models to better understand and assess how risks could affect the financial system. In our hypothetical scenario, a house price correction and elevated financial stress weigh on the economy. An increased number of households and businesses have difficulty repaying loans. Nonetheless, the large banks remain resilient.

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Financial System Review articles

June 12, 2014

Stress Testing the Canadian Banking System: A System-Wide Approach

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.

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Journal publications

“Accounting for Amplification Mechanisms in Bank Stress Test Models at the Bank of Canada” (with G. Halaj) in Handbook of Financial Stress Testing, Edited by J. Doyne Farmer, Alissa M. Kleinnijenhuis, Til Schuermann and Thom Wetzer, Cambridge University Press, 2022, pp. 484 - 510.