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Implementing Market-Based Indicators to Monitor Vulnerabilities of Financial Institutions

Staff analytical note 2016-5 Cameron MacDonald, Maarten van Oordt, Robin Scott
This note introduces several market-based indicators and examines how they can further inform the Bank of Canada’s vulnerability assessment of Canadian financial institutions. Market-based indicators of leverage suggest that the solvency risk for major Canadian banks has increased since the beginning of the oil-price correction in the second half of 2014.

Cameron MacDonald

Cameron MacDonald is a Principal Economist in the Financial Stability Department at the Bank of Canada.
June 9, 2016

Financial System Review - Press Conference (Video) - June 2016

Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn Wilkins. (11:15 (ET) approx.).

June 9, 2016

Financial System Review - Press Conference (Audio) - June 2016

Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn Wilkins. (11:15 (ET) approx.).

June 9, 2016

Securities Financing and Bond Market Liquidity

This report investigates how the markets for repurchase agreements and securities-lending agreements support the liquidity of Canadian bond markets. It also discusses how recent regulatory changes, as well as low interest rates and settlement failures, are potentially affecting securities-financing markets and, as a result, bond market liquidity.
Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G1, G12, G2
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