June 21, 2006 Using the Contingent Claims Approach to Assess Credit Risk in the Canadian Business Sector Financial System Review - June 2006 Michal Kozak, Meyer Aaron, Céline Gauthier Content Type(s): Publications, Financial System Review articles
March 11, 2010 Principles for Interesting Times Remarks Mark Carney Carleton University Ottawa, Ontario I would like to thank students from universities across Canada for joining me on this special day, the 75th anniversary of the Bank of Canada Content Type(s): Press, Speeches and appearances, Remarks
I Am So Tired! I Don’t Know What to Do! Survey Fatigue and Financial Literacy: Results from a Randomized Experiment Staff working paper 2026-5 Anna Chernesky, Kim Huynh, Marcel Voia We use a randomization of question placement in surveys to estimate the causal effect on financial literacy results. We find that financial literacy questions placed at the end of a survey lead to a drop in financial literacy of 5%–15%. This research suggests a measure of financial literacy adapted for survey length. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C8, C81, C83, D, D1, D12, G, G5, G53 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Cash and bank notes, Digital assets and fintech, Payment and financial market infrastructures, Retail payments
The Market for Acquiring Card Payments from Small and Medium-Sized Canadian Merchants Staff discussion paper 2020-5 Angelika Welte, Jozsef Molnar This note uses industry data and a unique dataset of small and medium-sized merchants to provide insights into the acquirer-merchant market in Canada. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C2, D, D2, E, E4, E42 Research Theme(s): Financial markets and funds management, Market structure, Money and payments, Payment and financial market infrastructures, Retail payments
MSTest: An R-Package for Testing Markov Switching Models Staff working paper 2026-7 Gabriel Rodriguez Rondon, Jean-Marie Dufour We present the R package MSTest, which implements hypothesis testing procedures to determine the number of regimes in Markov switching models. The package provides several testing frameworks, including Monte Carlo likelihood ratio tests, moment-based tests, parameter stability tests, and classical likelihood ratio procedures. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C12, C15, C18, C6, C63, C8, C87 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models, Monetary policy, Real economy and forecasting
CORRA: Explaining the rise in volumes and resulting upward pressure Staff analytical note 2024-21 Boran Plong, Neil Maru On May 27, 2024, the settlement period for trading GoC bonds in the secondary market in Canada moved from two days to one. This shortened time for settling secondary cash bond trades caused CORRA volumes to rise significantly, and they have remained elevated since. This combined with the skew in demand for funding has pressured CORRA higher. We find no indications that any other factors are contributing to the most recent pressures on CORRA. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D4, D5, D53, E, E4, E43, E44, E5, E52, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Monetary policy tools and implementation
Complementing the Credit Risk Assessment of Financial Counterparties with Market-Based Indicators Staff analytical note 2017-15 Guillaume Ouellet Leblanc, Maarten van Oordt The Bank’s internal credit risk assessment abilities are regularly enhanced. In this note, we present a recent innovation that extends the set of market-based indicators used in the credit risk assessment of financial counterparties. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G1, G10, G2, G24 Research Theme(s): Financial markets and funds management, Funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
February 21, 2013 Conference Summary: Financial Intermediation and Vulnerabilities Bank of Canada Review - Winter 2012-2013 Jason Allen, James Chapman, Ian Christensen The Bank of Canada’s annual economic conference, held in October 2012, brought together experts from across Canada and around the world to discuss key issues concerning financial intermediation and vulnerabilities. The conference covered such topics as household finances and their relationship to financial stability, as well as bank regulation, securitization and shadow banking. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): G, G2
November 15, 2012 Monetary Policy and the Risk-Taking Channel: Insights from the Lending Behaviour of Banks Bank of Canada Review - Autumn 2012 Teodora Paligorova, Jesus Sierra The financial crisis of 2007-09 and the subsequent extended period of historically low real interest rates have revived the question of whether economic agents are willing to take on more risk when interest rates remain low for a prolonged time period. This increased appetite for risk, which causes economic agents to search for investment assets and strategies that generate higher investment returns, has been called the risk-taking channel of monetary policy. Recent academic research on banks suggests that lending policies in times of low interest rates can be consistent with the existence of a risk-taking channel of monetary policy in Europe, South America, the United States and Canada. Specifically, studies find that the terms of loans to risky borrowers become less stringent in periods of low interest rates. This risk-taking channel may amplify the effects of traditional transmission mechanisms, resulting in the creation of excessive credit. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E5, E58, G, G2, G21
August 25, 2015 The Long-Term Evolution of House Prices: An International Perspective Remarks Lawrence L. Schembri Canadian Association for Business Economics Kingston, Ontario Deputy Governor Lawrence Schembri discusses the international evidence of underlying determinants of long-term movements in house prices. Content Type(s): Press, Speeches and appearances, Remarks