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.
Central Bank Digital Currency and Banking
Many central banks are considering whether to issue a new form of electronic money that would be accessible to the public. This new form is usually called a central bank digital currency (CBDC). Issuing a CBDC would have implications for the financial system and, more broadly, the wider economy.
Jonathan Chiu
Mohammad Davoodalhosseini
Janet Hua Jiang
Yu Zhu
Measuring Non-Financial Corporate Sector Vulnerabilities in Canada
The ratio of non-financial corporate debt to gross domestic product in Canada has increased noticeably in recent years and is currently at an all-time high. In light of this development, we use a unique firm-level dataset to construct vulnerability indicators for the non-financial corporate sector in Canada.
Timothy Grieder
Claire Schaffter
Liquidity Management of Canadian Corporate Bond Mutual Funds: A Machine Learning Approach
When redeeming shares for investors, bond fund managers must choose a mix of cash and bond sales to honour their commitments. This note uses machine learning algorithms to uncover new patterns in decisions fund managers make to meet redemptions.
Rohan Arora
Chen Fan
Guillaume Ouellet Leblanc
Macroprudential Policy with Capital Buffers
The countercyclical capital buffer is part of Basel III, the set of regulatory measures developed in response to the financial crisis of 2007–09. This study focuses on how time-varying capital buffers can address inefficiencies in economies with endogenous financial crises.
Josef Schroth
2017 Methods-of-Payment Survey Report
Cash use is declining while contactless and mobile payments are on the rise.
Christopher Henry
Kim Huynh
Angelika Welte
Relationships in the Interbank Market
In the interbank market, banks will sometimes trade below the central bank's deposit rate. We explain this anomaly using a theory based on market frictions and relationship lending.
Jonathan Chiu
Cyril Monnet
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.
Advances in Fixed Income Macro-Finance Research
The Bank of Canada and the Federal Reserve Bank of San Francisco hosted the 7th Conference on Fixed Income Markets, discussing the implications for monetary policy of new research that focuses on bond and money markets.
October 17, 2019
2019 Summer Workshop on Money, Banking, Payments and Finance
The Bank of Canada, together with Ed Nosal (Federal Reserve Bank at Atlanta) and Randall Wright (University of Wisconsin-Madison), showcased research on the interbank market, monetary policy, cryptocurrency and central bank digital currency.
August 13, 2019
Climate Change and Central Banking Workshop
This Bank of Canada conference examined macroeconomic and monetary policy challenges around climate change, including firm and bank exposures to physical and transition risks. Participants also discussed medium- and long-run implications for productivity growth and trade.
May 10, 2019
External Partnerships
We value research partnerships and offer opportunities for experienced and promising researchers in a variety of fields.