Xuezhi Liu

Senior Economist

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Bio

Xuezhi Liu is a Senior Economist in the Financial Stability Department at the Bank of Canada. His work focuses on the assessment of vulnerabilities and risks in the Canadian financial system and the associated prudential policies. Prior to joining the Bank, Mr. Liu worked in the financial risk department of a major Canadian financial institution in Toronto. He obtained an Honors Bachelor of Arts degree in Economics and a Master of Science degree in Applied Mathematics, both from the University of Western Ontario.


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Staff Analytical Notes

Assessing the Resilience of the Canadian Banking System

Staff Analytical Note 2019-16 Charles Gaa, Xuezhi Liu, Cameron MacDonald, Xiangjin Shen
The stability of the Canadian financial system, as well as its ability to support the Canadian economy, depends on the ability of financial institutions to absorb and manage major shocks. This is especially true for large banks, which perform services essential to the Canadian economy.
Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Financial institutions, Financial stability JEL Code(s): C, C6, C63, E, E2, E27, E3, E37, E4, E44, G, G0, G01, G2, G21

Modelling the Macrofinancial Effects of a House Price Correction in Canada

We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline.

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Staff Discussion Papers

What Matters in Determining Capital Surcharges for Systemically Important Financial Institutions?

Staff Discussion Paper 2011-9 Céline Gauthier, Toni Gravelle, Xuezhi Liu, Moez Souissi
One way of internalizing the externalities that each individual bank imposes on the rest of the financial system is to impose capital surcharges on them in line with their systemic importance.
Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Financial system regulation and policies JEL Code(s): C, C1, C15, C8, C81, E, E4, E44, G, G0, G01, G2, G21

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Bank Publications

Financial System Hub

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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Journal Publications

Refereed journals

  • "Introducing funding liquidity risk in a macro stress-testing framework."
    (with Céline Gauthier and Moez Souissi). International Journal of Central Banking 10.4 (2014): 105-141.

Other

Publications

  • "What Matters in Determining Capital Surcharge for Systemically Important Financial Institutions?."
    (with Céline Gauthier, Toni Gravelle and Moez Souissi). In Simulation in Computational Finance and Economics: Tools and Emerging Applications. IGI Global, (2013): 211-224.