June 9, 2016
An assessment of potential risks to the stability of Canada's financial system.
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June 9, 2016
Large Canadian Public Pension Funds: A Financial System Perspective
Financial System Review - June 2016
Guillaume Bédard-Pagé,
Annick Demers,
Eric Tuer,
Miville Tremblay
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.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Financial institutions,
Financial stability,
International financial markets
JEL Code(s):
G,
G1,
G11,
G2,
G23
June 9, 2016
Financial System Review - June 2016
The Financial System Review concludes that the overall level of risk to Canada’s financial system is largely unchanged from six months ago. While household vulnerabilities have moved higher, the ongoing economic recovery in Canada means that the overall risk remains the same. The Bank highlights three vulnerabilities in the financial system: the elevated level of household indebtedness, imbalances in some regional housing markets and the fragility of liquidity in fixed-income markets.
Content Type(s):
Publications,
Financial Stability Report
December 15, 2015
Indebted Households and Potential Vulnerabilities for the Canadian Financial System: A Microdata Analysis
Over the past decade, an increasing proportion of households in Canada have become highly indebted relative to their income. These highly indebted households now hold one-fifth of total Canadian household debt.Simulations suggest that this greater degree of household indebtedness could exacerbate the impact of shocks to income and interest rates relative to the pre-crisis period. However, an assessment of the vulnerability of the Canadian financial system should, among other factors, account for the ability of Canadian financial institutions to withstand losses from the household sector.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Credit and credit aggregates,
Financial stability,
Housing,
Recent economic and financial developments
JEL Code(s):
D,
D1,
D14,
E,
E5,
E51
December 15, 2015
Residential Mortgage Securitization in Canada: A Review
Residential mortgage securitization plays an important role in the Canadian system of housing finance, especially given the rising share of government-supported (i.e., public) securitization over the past 15 years. Mordel and Stephens analyze the evolution of two types of mortgage securitization in Canada— private and public — focusing in particular on the underlying public policy and economic benefits of the latter. They review the potential implications of the extent of public securitization and conclude with a discussion of policies that could be considered to reinvigorate private securitization in Canada.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies,
Housing
JEL Code(s):
G,
G2,
G28