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.
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
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
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
The Propagation of Regional Shocks in Housing Markets: Evidence from Oil Price Shocks in Canada
How do global oil price shocks spread through Canada’s economy? With Canada’s regionally diverse economy in mind, we explore the implications of oil price shocks for Canadian housing markets and regional economies. We show that the belief that oil price shocks only matter in oil-rich regions is false.
Lutz Kilian
Xiaoqing Zhou
Calibrating the Magnitude of the Countercyclical Capital Buffer Using Market-Based Stress Tests
How much capital do banks need as a buffer to absorb severe shocks? By using historical stock market data, market-based stress tests help estimate the magnitude of capital buffers necessary to absorb severe but plausible shocks.
Maarten van Oordt
Central Bank Digital Currency and Monetary Policy
Many central banks are contemplating whether to issue central bank digital currency. This piece explores the implications as well as potential motivators of such a step.
Mohammad Davoodalhosseini
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.
Risk Management and Financial Innovation Conference
The Bank of Canada and the Rotman School of Management organized a conference in memory of Professor Peter Christoffersen, a well-respected colleague and Bank of Canada research fellow, who passed away in June 2018. The conference showcased frontier research in finance on topics such as fintech, banking regulations, extreme risks and risk management.
March 8, 2019
Capital Flows in Advanced Economies
This conference examines the latest empirical and theoretical research surrounding capital flows for financial stability in advanced economies. The volatility and large size of capital flows has led to an international policy debate about their financial stability implications for advanced economies as well as potential ramifications for emerging economies.
November 13, 2018
External Partnerships
We value research partnerships and offer opportunities for experienced and promising researchers in a variety of fields.