The Countercyclical Capital Buffer and International Bank Lending: Evidence from Canada Staff working paper 2021-61 David Xiao Chen, Christian Friedrich We examine the impact of the CCyB on foreign lending activities of Canadian banks. We show that the announcement of a tightening in another country’s CCyB leads to a decrease in the growth rate of cross-border lending between Canadian banks and borrowers in that other country. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, F, F2, F21, F3, F32, G, G2, G21, G28 Research Theme(s): Financial markets and funds management, International markets and currencies, Financial system, Financial stability and systemic risk, Financial system regulation and oversight
Bitcoin Adoption and Beliefs in Canada Staff working paper 2021-60 Daniela Balutel, Christopher Henry, Jorge Vásquez, Marcel Voia Using an economic model as well as survey data from the Bank of Canada, we study what factors influence the adoption of Bitcoin in Canada. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D83, O, O3, O33 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models, Money and payments, Digital assets and fintech
Democratic Political Economy of Financial Regulation Staff working paper 2021-59 Igor Livshits, Youngmin Park We offer a theory of how inefficiently lax financial regulation could arise in a democratic society. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E43, E44, G, G0, G01, G2, G21, G28, P, P4, P48 Research Theme(s): Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Household and business credit
Discount Rates, Debt Maturity, and the Fiscal Theory Staff working paper 2021-58 Alexandre Corhay, Thilo Kind, Howard Kung, Gonzalo Morales Do bond risk premiums influence the effects of debt maturity operations? Using a model with realistic bond risk premiums, we show that maturity operations have sizable effects on expected inflation and output when the central bank passively responds to inflation and the fiscal authority weakly responds to the debt level. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E43, E44, E6, E63, G, G1, G12 Research Theme(s): Financial markets and funds management, Funds management, Market functioning, Financial system, Financial stability and systemic risk, Monetary policy, Monetary policy tools and implementation
November 23, 2021 Checking up on Canada’s financial system Speech summary Paul Beaudry Ontario Securities Commission Toronto, Ontario Deputy Governor Paul Beaudry speaks about the strength and resilience of the financial system throughout the COVID-19 pandemic and economic recovery. He also outlines key vulnerabilities and risks going forward. Content Type(s): Press, Speeches and appearances, Speech summaries Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth
November 23, 2021 CARR publishes CORRA-related recommendations and key findings in its review of CDOR The Canadian Alternative Reference Rate working group (CARR) today published a set of recommendations aimed at facilitating the widespread use of the Canadian Overnight Repo Rate Average (CORRA) in the Canadian financial system. Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
November 23, 2021 Bank of Canada announces finalists for the seventh annual Governor’s Challenge The Bank of Canada has announced the five finalist teams in the 2021–22 edition of The Governor’s Challenge, a competition where university students simulate the role of advisor to the Bank’s Governing Council. Content Type(s): Press, Announcements Source(s): The Governor's Challenge
November 23, 2021 Financial stability through the pandemic and beyond Remarks (delivered virtually) Paul Beaudry OSC Dialogue, Ontario Securities Commission Toronto, Ontario Deputy Governor Paul Beaudry provides an update on financial vulnerabilities and risks in Canada, including those stemming from the COVID-19 pandemic. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Currency, Bank notes, Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation
November 22, 2021 Operational details for upcoming secondary market purchases of Government of Canada securities (November 29-December 10) As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program