Loan Insurance, Market Liquidity, and Lending Standards Staff working paper 2019-47 Toni Ahnert, Martin Kuncl We examine loan insurance—credit risk transfer upon origination—in a model in which lenders can screen, learn loan quality over time, and can sell loans. Some lenders with low screening ability insure, benefiting from higher market liquidity of insured loans while forgoing the option to exploit future information about loan quality. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G0, G01, G2, G21, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Household and business credit
Assessment of Liquidity Creation in the Canadian Banking System Staff analytical note 2019-30 Annika Gnann, Sahika Kaya Liquidity creation is a fundamental function of banks. It provides the public with easy access to funds. These funds are important because they allow households and businesses to consume and invest. In this note, we measure liquidity creation by Canadian financial institutions from the first quarter of 2012 to the second quarter of 2019, using a methodology suggested by Berger and Bouwman (2009) and known as the BB measure. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G2, G21, G28, G3, G32 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk
December 6, 2019 Toward 2021: Speeches To help inform Canadians about the renewal process, Governing Council members spoke publicly about the economy and issues related to the monetary policy framework.
Extreme Downside Risk in Asset Returns Staff working paper 2019-46 Lerby Ergun Financial markets can experience sudden and extreme downward movements. Investors are highly concerned about the performance of their assets in such scenarios. Some assets perform badly in a downturn in the market; others have milder reactions. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C14, G, G1, G11, G12 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk
December 6, 2019 Bank of Canada Governor Stephen S. Poloz to step down in June 2020 Media Relations Ottawa, Ontario The Board of Directors of the Bank of Canada announced today that Governor Stephen S. Poloz has informed them that he will not seek a second term as Governor when his seven-year term expires on June 2, 2020. Content Type(s): Press, Press releases
What Do Survey Data Tell Us About US Businesses? Staff working paper 2019-45 Anmol Bhandari, Serdar Birinci, Ellen McGrattan, Kurt See This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C8, C83, E, E2, E22, H, H2, H25 Research Theme(s): Financial system, Household and business credit, Monetary policy, Real economy and forecasting