November 28, 2017
A detailed review of developments in the financial system.
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Financial System Hub
Promoting a stable and efficient financial system.
Latest publications
June 8, 2017
Canada’s International Investment Position: Benefits and Potential Vulnerabilities
While greater global financial integration is beneficial, the authors discuss how foreign capital inflows can also facilitate the buildup of domestic vulnerabilities and potentially lead to destabilizing reversals. Canada’s current international investment position is typical of advanced economies and will likely continue to act as an economic stabilizer. However, the growth and composition of Canada’s international investment position warrant continued monitoring.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Balance of payments and components,
Financial stability,
International financial markets
JEL Code(s):
F,
F2,
F21,
F3,
F32,
F34,
F36,
F4,
F6
June 8, 2017
Using Market-Based Indicators to Assess Banking System Resilience
This report reviews the use of quantitative tools to gauge market participants’ assessment of banking system resilience. These measures complement traditional balance-sheet metrics and suggest that markets consider large Canadian banks to be better placed to weather adverse shocks than banks in other advanced economies. Compared with regulatory capital ratios, however, the measures suggest less improvement in banking system resilience since the pre-crisis period.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Financial institutions,
Financial markets,
Financial stability
JEL Code(s):
G,
G0,
G01,
G1,
G10,
G2,
G21
June 8, 2017
This issue of the Financial System Review reflects the Bank’s judgment that household indebtedness and housing market imbalances–the most important vulnerabilities for the Canadian financial system–have moved higher over the past six months. However, the financial system remains resilient, and macroeconomic conditions continue to improve. Other vulnerabilities discussed in this FSR are fragile fixed-income market liquidity and the capacity of an interconnected financial system to mitigate cyber threats.
Financial System Review - June 2017
Content Type(s):
Publications,
Financial System Review
May 25, 2017
Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?
Financial System Review - June 2017
James Chapman,
Rodney J. Garratt,
Scott Hendry,
Andrew McCormack,
Wade McMahon
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.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Digital currencies and fintech,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E58,
G,
G2,
G28