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296
result(s)
COVID-19’s impact on the financial health of Canadian businesses: An initial assessment
Staff Analytical Note 2021-8
Timothy Grieder,
Mikael Khan,
Juan Ortega,
Callie Symmers
Despite COVID-19 challenges, bold policy measures in Canada have helped businesses manage cash flow pressures and kept insolvency filings low. But the impact of the pandemic has been uneven, and the financial health of some firms may further deteriorate over the next year.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Credit and credit aggregates,
Financial stability,
Firm dynamics,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
G,
G3,
G31,
G32,
G33,
G38
Optimal Monetary and Macroprudential Policies
Staff Working Paper 2021-21
Josef Schroth
Optimal coordination of monetary and macroprudential policies implies higher risk weights on (safe) bonds any time that banks are required to hold additional capital buffers. Coordination also implies a somewhat tighter monetary-policy stance whenever such capital buffers are released.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial stability,
Financial system regulation and policies,
Inflation targets,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E6,
E60,
G,
G2,
G21,
G28
Behaviour in the Canadian large-value payment system: COVID-19 vs. the global financial crisis
Staff Analytical Note 2021-7
Alexander Chaudhry,
Anneke Kosse,
Karen Sondergard
Unlike the 2008–09 global financial crisis, the onset of the COVID-19 crisis did not raise stress levels in Canada’s Large Value Transfer System. Swift changes to the Bank of Canada’s collateral policy and its large-scale asset purchase programs likely eased liquidity pressures in the system.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Financial institutions,
Financial stability,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58,
E6,
E65
Update on housing market imbalances and household indebtedness
Staff Analytical Note 2021-4
Mikael Khan,
Olga Bilyk,
Matthew Ackman
Exceptional strength in the housing market during the pandemic is underpinning Canada’s economic recovery. However, two key vulnerabilities—housing market imbalances and elevated household indebtedness—have intensified.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Credit and credit aggregates,
Financial stability,
Housing,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
D,
D1,
D14,
D8,
D84,
E,
E5,
G,
G2,
G21,
G28,
R,
R2,
R21
Stablecoin Assessment Framework
Staff Discussion Paper 2021-6
Alejandro García,
Bena Lands,
Dennis Yanchus
We offer relevant authorities a three-step assessment framework they can use to understand, identify and quantify the risks associated with stablecoin and other cryptocurrency arrangements.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial markets,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
D,
D7,
D78,
D8,
D81,
G,
G0,
G01,
G1,
G18,
O,
O3,
O38
Non-bank financial intermediation in Canada: a pulse check
Staff Analytical Note 2021-2
Rohan Arora,
Guillaume Bédard-Pagé,
Philippe Besnier,
Hayden Ford,
Alan Walsh
The Canadian non-bank financial intermediation (NBFI) sector saw strong growth in 2018 and 2019. In 2020, COVID‑19 caused a financial shock. We provide a preliminary analysis on the impact of COVID‑19 on the sector as well as an update on its growth.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Financial institutions,
Financial markets,
Financial stability
JEL Code(s):
G,
G0,
G01,
G2,
G20,
G23
Market Concentration and Uniform Pricing: Evidence from Bank Mergers
Staff Working Paper 2021-9
João Granja,
Nuno Paixao
We show that US banks price deposits almost uniformly across their branches and that this pricing practice is more important than increases in local market concentration in explaining the deposit rate dynamics following bank mergers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Market structure and pricing
JEL Code(s):
D,
D4,
G,
G2,
G20,
G21,
G28,
G3,
G34,
L,
L1,
L11
Estimating Policy Functions in Payments Systems Using Reinforcement Learning
Staff Working Paper 2021-7
Pablo S. Castro,
Ajit Desai,
Han Du,
Rodney J. Garratt,
Francisco Rivadeneyra
We demonstrate the ability of reinforcement learning techniques to estimate the best-response functions of banks participating in high-value payments systems—a real-world strategic game of incomplete information.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
A,
A1,
A12,
C,
C7,
D,
D8,
D83,
E,
E4,
E42,
E5,
E58
Consumer Credit with Over-optimistic Borrowers
Staff Working Paper 2020-57
Florian Exler,
Igor Livshits,
James (Jim) C. MacGee,
Michèle Tertilt
When lenders cannot directly identify behavioural and rational borrowers, they use type scoring to track the likelihood of a borrower’s type. This leads to the partial pooling of borrowers, which results in rational borrowers subsidizing borrowing costs for behavioural borrowers. This, in turn, reduces the effectiveness of regulatory policies that target mistakes by behavioural borrowers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Credit risk management,
Financial system regulation and policies
JEL Code(s):
E,
E2,
E21,
E4,
E49,
G,
G1,
G18,
K,
K3,
K35