Financial System Research Centre

On this page we showcase our latest research and analysis, conferences and partnerships with researchers outside the Bank.

About the FSRC

The FSRC will advance high-quality financial system research in Canada to inform policy and improve the economic and financial well-being of Canadians. The Centre showcases the Bank’s latest financial system research and analysis, helping us to build partnerships with researchers outside the Bank. We will also host an annual conference highlighting financial system research from Canada and around the world, including our own research and the results of our joint research ventures.


Research

Our goal is to advance the understanding of the structure, function and evolution of the Canadian financial system. This is essential to the core functions of the Bank. Our in-depth research helps identify risks and shapes policy by addressing issues in financial markets, banking, payments systems and other matters in the financial system.

An Optimal Macroprudential Policy Mix for Segmented Credit Markets

How can macroprudential policy and monetary policy stabilize segmented credit markets? Is there a trade-off between financial stability and price stability? I use a theoretical model to evaluate the performance of alternative policies and find the optimal mix of macroprudential and monetary policy in response to aggregate shocks.
Jelena Zivanovic
Jelena Zivanovic
June 28, 2021

Bank Runs, Bank Competition and Opacity

How is the stability of the financial sector affected by competition in the deposit market and by decisions banks make about transparency? We find that policies that aim to increase bank competition lead to higher bank deposit rates, increasing both withdrawal incentives and instability.
Toni Ahnert
Toni Ahnert
David Martinez-Miera
David Martinez-Miera
June 22, 2021

Optimal Monetary and Macroprudential Policies

Macroprudential policy should aim for bank balance sheets that are larger and safer during normal times but smaller and riskier during financial crises. During recoveries from financial crises, monetary policy should complement macroprudential policy by being less expansive than what would be required to close the labour gap.
Josef Schroth
Josef Schroth
May 7, 2021

Secular Economic Changes and Bond Yields

We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.
Bruno Feunou
Bruno Feunou
Jean-Sébastien Fontaine
Jean-Sébastien Fontaine
March 19, 2021

Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework

How do banks adjust their loan rate markup in response to macroeconomic shocks?
Jiaqi Li
Jiaqi Li
March 12, 2021

Monetary Policy Pass-Through with Central Bank Digital Currency

Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Janet Hua Jiang
Janet Hua Jiang
Yu Zhu
Yu Zhu
March 12, 2021

Conferences

We regularly bring together researchers from academic and policy institutions at conferences that discuss financial system relevant topics such as banking regulation, housing markets, retail payments, and the next generation of central bank models.

Financial Markets’ Response to COVID-19 Policy Interventions

Policy-makers reacted to the COVID-19 crisis through a variety of channels. This Systemic Risk Centre conference, co-organized with the Bank of Canada, focused on how financial markets responded to these policy initiatives and asked what we have learned for future interventions.
November 27, 2020

Debt Management Modelling Workshop

The Bank of Canada is hosting a one-day workshop focusing on advances in models and frameworks for sovereign debt management.
April 24, 2020

Conference on the Economics of Central Bank Digital Currency

This two-day conference, jointly organized by the Bank of Canada and Sveriges Riksbank, was held in Ottawa, Ontario. The event provided a forum for central bankers and academic researchers to discuss arguments for and against the issuance of central bank digital currencies.
October 17, 2019

External Partnerships

We value research partnerships and offer opportunities for experienced and promising researchers in a variety of fields.

External Academic Consultants

Academic consultants and researchers working with the Bank have access to some unique data sets and are often granted an individual-level view of household and business choices. Notable experts in the field have started to collaborate with our staff to explore these data sets. Evren Damar and Sebastien Bertermier share their experiences working with us.

PhD Internship Program

As a PhD student, you will spend two to four months pursuing your dissertation as well as presenting and promoting your research. Within this environment, you will find a wealth of opportunities to grow and build your professional expertise and network with fellow Bank researchers as well as external academics who visit regularly.

Visiting Scholar Program

This program provides outstanding scholars with an opportunity to work at the Bank of Canada.