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8917 Results

Banking Competition and Access to Cash and Retail Banking Services in Rural Canada

Staff working paper 2026-19 Hongyu Xiao, Robert Petrunia, Sarah Lucky
We study access to Canadian retail banking and cash services in rural, localized markets using the Bresnahan-Reiss entry threshold framework. We find that the first retail banking services branch entry requires about 500 residents in an average market, whereas the first cash services location requires about 80 residents.

The investor base for sovereign debt: Why diversification matters

Staff analytical paper 2026-29 Sam Foxall, Jeffrey Gao
Sovereign borrowing is rising, just as central banks are stepping back. Meanwhile, commercial bank holdings of sovereign bonds remain well below pre-global financial crisis levels. This leaves foreign investors and investment funds, often hedge funds, to absorb more of this growing supply. Their greater involvement supports liquidity and robust auction results, but it can also concentrate risk.

Understanding Systemic Risks in the Canadian Financial System

This paper reviews recent efforts to monitor and assess systemic risk in the Canadian financial system and outlines a framework for future system-wide stress testing.

Monetary Policy in a Volatile World: ToTEM Simulations

Using simulations of the Bank of Canada’s projection model, we assess inflation risks from greater supply-shock volatility and show that monetary policy faces sharper trade-offs, as stabilizing inflation increasingly comes at the cost of weaker real activity.

Everything You Want to Know About the Bank’s Standing Liquidity Facility… But were too afraid to ask!

Staff analytical paper 2026-26 Kaetlynd McRae, Jessie Ziqing Chen
The Standing Liquidity Facility (SLF) is one of the Bank of Canada’s least discussed tools—and one of its most important. Embedded directly in Canada’s high value payment system, Lynx, the SLF operates quietly in the background every business day, ensuring the smooth settlement of payments and reinforcing the implementation of monetary policy.

Unpacking interest rate uncertainty in 2025

Staff analytical paper 2026-25 Harshbir Kaur, Rishi Vala
Amid heightened Canada–US trade tensions in 2025, financial markets showed signs that investors had greater difficulty anticipating near-term Bank of Canada interest rate decisions. We look at the Overnight Index Swap prices and intraday Government of Canada yields to identify the main driver of uncertainty around interest rate decisions.
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