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8737 Results

Perceived interconnections between Canadian banks and non-bank financial intermediaries under stress

Staff analytical note 2025-26 Javier Ojea Ferreiro
I study the links between Canadian banks and non-bank financial intermediaries (NBFIs) by observing co-movements in stock prices. Perceived interconnections increased before the COVID-19 pandemic but have since stabilized, with the strongest ties seen between large banks and NBFIs. The secured credit line extended to Home Trust, a non-bank mortgage lender that experienced severe funding stress in 2017, significantly reduced banks' risk exposure to NBFIs during this episode.
Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C5, C58, G, G0, G01, G2, G21, G23, G3, G32

Money Talks: How Foreign and Domestic Monetary Policy Communications Move Financial Markets

Staff working paper 2025-33 Rodrigo Sekkel, Henry Stern, Xu Zhang
We construct a dataset on Federal Reserve and Bank of Canada non-rate announcement events to provide novel insights into how foreign and domestic monetary policy communications affect the financial markets of open economies. We find that Fed non-rate communications have a stronger impact on long-term interest rates and stock futures, while Bank of Canada communications are relatively more important for short-term interest rates and the exchange rate.
Content Type(s): Staff research, Staff working papers JEL Code(s): E, E5, E52, F, F3, F31, G, G1, G15
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