Find our research on the financial system by keyword, author, content type, JEL code, topic or date of publication.
452
result(s)
A Portfolio-Balance Model of Inflation and Yield Curve Determination
Staff Working Paper 2020-6
Antonio Diez de los Rios
How does the supply of nominal government debt affect the macroeconomy? To answer this question, we propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Debt management,
Inflation and prices,
Interest rates,
Monetary policy
JEL Code(s):
E,
E4,
E43,
E5,
E52,
G,
G1,
G12,
H,
H6,
H63
A Spatial Model of Bank Branches in Canada
Staff Working Paper 2020-4
Heng Chen,
Matthew Strathearn
Using data on bank branch locations across Canada from 2008 to 2018, we explore an interesting aspect of bank branch competition—geographic concentration. We find that bank branch density does not correlate with geographic and market concentration; however, we do find strong correlation with postal-code demographics.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Market structure and pricing
JEL Code(s):
L,
L1,
R,
R3
Contagion in Dealer Networks
Staff Working Paper 2020-1
Jean-Sébastien Fontaine,
Adrian Walton
Dealers connect investors who want to buy or sell securities in financial markets. Over time, dealers and investors form trading networks to save time and resources. An emerging field
of research investigates how networks form.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Market structure and pricing,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
G,
G1,
G2,
G21,
L,
L1,
L14
Loan Insurance, Market Liquidity, and Lending Standards
Staff Working Paper 2019-47
Toni Ahnert,
Martin Kuncl
We examine loan insurance—credit risk transfer upon origination—in a model in which lenders can screen, learn loan quality over time, and can sell loans. Some lenders with low screening ability insure, benefiting from higher market liquidity of insured loans while forgoing the option to exploit future information about loan quality.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial markets,
Financial system regulation and policies
JEL Code(s):
G,
G0,
G01,
G2,
G21,
G28
Extreme Downside Risk in Asset Returns
Staff Working Paper 2019-46
Lerby Ergun
Financial markets can experience sudden and extreme downward movements. Investors are highly concerned about the performance of their assets in such scenarios. Some assets perform badly in a downturn in the market; others have milder reactions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C14,
G,
G1,
G11,
G12
Interconnected Banks and Systemically Important Exposures
Staff Working Paper 2019-44
Alan Roncoroni,
Stefano Battiston,
Marco D’Errico,
Grzegorz Halaj,
Christoffer Kok
How do banks' interconnections in the euro area contribute to the vulnerability of the banking system? We study both the direct interconnections (banks lend to each other) and the indirect interconnections (banks are exposed to similar sectors of the economy). These complex linkages make the banking system more vulnerable to contagion risks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability
JEL Code(s):
C,
C6,
C63,
G,
G1,
G15,
G2,
G21
November 19, 2019
Researching the Economic Impacts of Climate Change
The Bank of Canada has a mandate to “promote the economic and financial welfare of Canada,” primarily through the conduct of monetary policy and promotion of a safe, sound and efficient financial system. Understanding the macroeconomic and financial system impacts of climate change and the transition to a low-carbon economy is therefore a priority for the Bank.
Content Type(s):
Staff research,
Other
Topic(s):
Climate change
The Economics of Cryptocurrencies—Bitcoin and Beyond
Staff Working Paper 2019-40
Jonathan Chiu,
Thorsten Koeppl
Since the creation of Bitcoin in 2009, over 2,000 cryptocurrencies have been issued. We evaluate how well a cryptocurrency functions as a payment system.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E5,
L,
L5
Resolving Failed Banks: Uncertainty, Multiple Bidding & Auction Design
Staff Working Paper 2019-30
Jason Allen,
Robert Clark,
Brent Hickman,
Eric Richert
Bank resolution is costly. In the United States, the Federal Deposit Insurance Corporation (FDIC) typically resolves failing banks by auction.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Financial institutions
JEL Code(s):
C,
C5,
C57,
D,
D4,
D44,
G,
G2,
G21