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257
result(s)
Transition Scenarios for Analyzing Climate-Related Financial Risk
Staff Discussion Paper 2022-1
Y.-H. Henry Chen,
Erik Ens,
Olivier Gervais,
Hossein Hosseini,
Craig Johnston,
Serdar Kabaca,
Miguel Molico,
Sergey Paltsev,
Alex Proulx,
Argyn Toktamyssov
Climate transition scenarios clarify climate-related risks to our economy and financial system. This paper summarizes key results of Canada-relevant scenarios developed in a pilot project on climate risk by the Bank of Canada and the Office of the Superintendent of Financial Institutions.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Climate change,
Economic models,
Financial stability,
International topics
JEL Code(s):
C,
C6,
C68,
D,
D5,
D58,
E,
E5,
E50,
O,
O4,
O44,
P,
P1,
P18,
Q,
Q5,
Q54
Housing demand in Canada: A novel approach to classifying mortgaged homebuyers
Staff Analytical Note 2022-1
Mikael Khan,
Yang Xu
We introduce a novel approach to categorize mortgaged homebuyers into first-time homebuyers, repeat homebuyers and investors. We show how these groups contribute to activity in Canadian housing markets, and we analyze the differences in their demographic and financial characteristics.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial stability,
Housing
JEL Code(s):
R,
R2,
R21,
R3,
R31
News-Driven International Credit Cycles
Staff Working Paper 2021-66
Galip Kemal Ozhan
This paper examines the implications of positive news about future asset values that turn out to be incorrect at a later date in an open economy model with banking. The model captures the patterns of bank credit and current account dynamics in Spain between 2000 and 2010. The model finds that the use of unconventional policies leads to a milder bust.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Economic models,
Financial stability,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
E,
E4,
E44,
F,
F3,
F32,
F4,
F41,
G,
G1,
G15,
G2,
G21
Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System
Staff Working Paper 2021-64
Neville Arjani,
Fuchun Li,
Zhentong Lu
Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C3,
E,
E4,
E42,
G,
G1,
G2,
G28
Revisiting the Monetary Sovereignty Rationale for CBDCs
Staff Discussion Paper 2021-17
Skylar Brooks
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Debt management,
Digital currencies and fintech,
Exchange rate regimes,
Financial stability,
Monetary policy
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E52,
E58,
H,
H1,
H12,
H6,
H63
The Countercyclical Capital Buffer and International Bank Lending: Evidence from Canada
Staff Working Paper 2021-61
David Xiao Chen,
Christian Friedrich
We examine the impact of the CCyB on foreign lending activities of Canadian banks. We show that the announcement of a tightening in another country’s CCyB leads to a decrease in the growth rate of cross-border lending between Canadian banks and borrowers in that other country.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit risk management,
Financial institutions,
Financial stability,
Financial system regulation and policies,
International topics
JEL Code(s):
E,
E3,
E32,
F,
F2,
F21,
F3,
F32,
G,
G2,
G21,
G28
Democratic Political Economy of Financial Regulation
Staff Working Paper 2021-59
Igor Livshits,
Youngmin Park
We offer a theory of how inefficiently lax financial regulation could arise in a democratic society.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies,
Housing,
Interest rates
JEL Code(s):
E,
E4,
E43,
E44,
G,
G0,
G01,
G2,
G21,
G28,
P,
P4,
P48
Are Bank Bailouts Welfare Improving?
Staff Working Paper 2021-56
Malik Shukayev,
Alexander Ueberfeldt
Financial sector bailouts, while potentially beneficial during a crisis, might lead to excessive risk taking if anticipated. Taking expectations and aggregate risk implications into account, we show that bailouts can be welfare improving, but only if capital adequacy constraints are sufficiently tight.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
D,
D6,
D62,
E,
E3,
E32,
E4,
E44,
G,
G0,
G01
A Q-Theory of Banks
Staff Working Paper 2021-44
Juliane Beganau,
Saki Bigio,
Jeremy Majerovitz,
Matías Vieyra
Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E4,
E44,
G,
G2,
G21,
G3,
G32,
G33