The Share of Systematic Variations in the Canadian Dollar—Part III Staff Analytical Note 2018-13 Guillaume Nolin, James Kyeong, Jean-Sébastien Fontaine We draw a parallel between the dramatic increases of systematic variations in exchange rates and international bank lending. We find that when a country’s currency has a larger share of systematic variations, lending flows by international banks to that country become more sensitive to global lending - they also become more systematic. This parallel is particularly prevalent for large commodity exporters, including Canada. Global financial intermediation may open a new channel between the real economy and exchange rates. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Exchange rates JEL Code(s): F, F3, F31
December 7, 2023 Economic progress report: Immigration, housing and the outlook for inflation Remarks Toni Gravelle Windsor–Essex Regional Chamber of Commerce Windsor, Ontario Deputy Governor Toni Gravelle discusses the latest interest rate decision along with how immigration helps Canada’s economy and how it impacts inflation. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Domestic demand and components, Housing, Inflation and prices, Interest rates, Labour markets, Monetary policy, Potential output, Price stability, Recent economic and financial developments
June 7, 2018 Covered Bonds as a Source of Funding for Banks’ Mortgage Portfolios Financial System Review - June 2018 Toni Ahnert The author traces developments in the Canadian covered bond market. Covered bonds could be a valuable way to provide a stable and diverse source of funding, particularly for smaller banks. However, higher issuance could increase banks’ vulnerability to liquidity stress, with implications for the broader financial system. The author argues that these benefits and challenges can be balanced in a well-designed policy framework. Content Type(s): Publications, Financial System Review articles Research Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G1, G2, G21, G28
Labour Shares and the Role of Capital and Labour Market Imperfections Staff Discussion Paper 2009-2 Lena Suchanek In continental Europe, labour shares in national income have exhibited considerable variation since 1970. Empirical and theoretical research suggests that the evolution of labour markets and labour market imperfections can, in part, explain this phenomenon. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Economic models, Financial institutions, Labour markets JEL Code(s): C, C7, C78, E, E2, E25, J, J6, J64
December 14, 2009 Reform of Securitization Financial System Review - December 2009 Jack Selody, Elizabeth Woodman Content Type(s): Publications, Financial System Review articles
December 8, 2011 Financial System Review - December 2011 In this issue of the Financial System Review, the Bank of Canada’s Governing Council judges that the risks to the stability of Canada’s financial system are high and have increased markedly over the past six months, owing primarily to an escalation of the sovereign debt crisis in the euro area and a weaker global economic outlook. Erratum: The data for Chart 7 on page 8 were plotted incorrectly. See revised chart. Content Type(s): Publications, Financial Stability Report
December 9, 2010 The Countercyclical Bank Capital Buffer: Insights for Canada Financial System Review - December 2010 David Xiao Chen, Ian Christensen Content Type(s): Publications, Financial System Review articles
House Prices, Consumption and the Role of Non-Mortgage Debt Staff Working Paper 2013-2 Katya Kartashova, Ben Tomlin This paper examines the relationship between house prices and consumption, through the use of debt. Using unique Canadian household-level data that reports the uses of debt, we begin by looking at the relationship between house prices and debt. Content Type(s): Staff research, Staff working papers Research Topic(s): Credit and credit aggregates, Domestic demand and components JEL Code(s): D, D1, D10, D14, D3, D31, E, E2, E21
June 23, 2005 Degree of Internationalization: An Analysis of Canadian Banks Financial System Review - June 2005 Walid Hejazi, Eric Santor Content Type(s): Publications, Financial System Review articles
Multibank Holding Companies and Bank Stability Staff Working Paper 2018-51 Radoslav Raykov, Consuelo Silva-Buston This paper studies the relationship between bank holding company affiliation and the individual and systemic risk of banks. Using the 2005 hurricane season in the US as an exogenous shock to bank balance sheets, we show that banks that are part of a holding parent company are more resilient than independent banks. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability JEL Code(s): G, G1, G2