Credit and credit aggregates - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T08:00:38+00:00Extreme Weather and Low-Income Household Finance: Evidence from Payday Loans
https://www.bankofcanada.ca/2024/01/staff-working-paper-2024-1/
This paper explores the impact of extreme weather exposures on the financial outcomes of low-income households. Our findings highlight the heightened financial vulnerability of low-income households to environmental shocks and underscore the need for targeted policies.2024-01-08T12:15:49+00:00enExtreme Weather and Low-Income Household Finance: Evidence from Payday Loans2024-01-08Climate changeCredit and credit aggregatesStaff Working Paper 2024-1https://www.bankofcanada.ca/wp-content/uploads/2024/01/swp2024-1.pdfExtreme Weather and Low-Income Household Finance: Evidence from Payday LoansShihan XieVictoria Wenxin XieXu ZhangJanuary 2024GG5QQ5Q54The impact of higher interest rates on mortgage payments
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-19/
We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact.2023-12-19T14:33:41+00:00enThe impact of higher interest rates on mortgage payments2023-12-19Should Banks Be Worried About Dividend Restrictions?
https://www.bankofcanada.ca/2023/09/staff-working-paper-2023-49/
A regulator would want to restrict dividends to force banks to rebuild capital during a crisis. But such a policy is not time-consistent. A time-consistent policy would let banks gradually rebuild capital and pay dividends even when their equity remains below pre-crisis levels.2023-09-27T13:03:27+00:00enShould Banks Be Worried About Dividend Restrictions?2023-09-27Business fluctuations and cyclesCredit and credit aggregatesCredit risk managementFinancial stabilityFinancial system regulation and policiesLender of last resortStaff Working Paper 2023-49https://www.bankofcanada.ca/wp-content/uploads/2023/09/swp2023-49.pdfStaff Working Paper 2023-49Josef SchrothSeptember 2023EE1E13E3E32E4E44The Macroeconomic Effects of Debt Relief Policies During Recessions
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-48/
A large-scale reduction in mortgage principal can strengthen a recovery, support house prices and lower foreclosures. The nature of the intervention shapes its impact, which rests on how resources are redistributed across households. The availability of bankruptcy on unsecured debt changes the response to large-scale mortgage relief by reducing precautionary savings.2023-08-28T11:39:12+00:00enThe Macroeconomic Effects of Debt Relief Policies During Recessions2023-08-28Business fluctuations and cyclesCredit and credit aggregatesDebt managementHousingStaff Working Paper 2023-48https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-48.pdfThe Macroeconomic Effects of Debt Relief Policies During RecessionsSoyoung LeeAugust 2023EE2E21E3E32E6The Impact of Unemployment Insurance and Unsecured Credit on Business Cycles
https://www.bankofcanada.ca/2023/04/staff-working-paper-2023-22/
This paper studies how unsecured consumer credit impacts the extent to which unemployment insurance (UI) policies smooth aggregate consumption fluctuations over the business cycle. Using a general equilibrium real business cycle model, I find that unsecured credit amplifies the extent to which UI smooths cyclical consumption fluctuations.2023-04-13T11:15:08+00:00enThe Impact of Unemployment Insurance and Unsecured Credit on Business Cycles2023-04-13Business fluctuations and cyclesCredit and credit aggregatesEconomic modelsFiscal policyLabour marketsStaff Working Paper 2023-22https://www.bankofcanada.ca/wp-content/uploads/2023/04/swp2023-22.pdfStaff Working Paper 2023-22Michael IrwinApril 2023EE2E21E24E3E32E4E44E6E62We Didn’t Start the Fire: Effects of a Natural Disaster on Consumers’ Financial Distress
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-15/
We use detailed consumer credit data to investigate the impact of the 2016 Fort McMurray wildfire, the costliest wildfire disaster in Canadian history, on consumers’ financial stress. We focus on the arrears of insured mortgages because of their important implications for financial institutions and insurers’ business risk and relevant management practices.2023-02-28T14:59:47+00:00enWe Didn’t Start the Fire: Effects of a Natural Disaster on Consumers’ Financial Distress2023-02-28Climate changeCredit and credit aggregatesEconometric and statistical methodsFinancial stabilityStaff Working Paper 2023-15https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-15.pdfStaff Working Paper 2023-15Anson T. Y. HoKim HuynhDavid T. Jacho-ChávezGeneviève ValléeFebruary 2023CC2C21DD1D12GG2G21QQ5Q54Geographical and Cultural Proximity in Retail Banking
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-2/
This paper measures how both geographical and cultural proximity of bank branches affect household credit choice and pricing. For credit products that require high levels of ex-ante screening, we find that both proximities can complement each other in reducing the cost of providing soft information, thereby increasing credit access.2023-01-05T07:36:06+00:00enGeographical and Cultural Proximity in Retail Banking2023-01-05Credit and credit aggregatesFinancial institutionsFinancial servicesStaff Working Paper 2023-2https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-2.pdfGeographical and Cultural Proximity in Retail BankingSantiago Carbo-ValverdeHéctor Pérez SaizHongyu XiaoJanuary 2023DD8D82D83GG2G20G21RR2R22ZZ1Z10Z13Monetary Policy, Credit Constraints and SME Employment
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-49/
We revisit an old question: how do financial constraints affect the transmission of monetary policy to the real economy? To answer this question, we propose a simple empirical strategy that combines firm-level employment and balance sheet data, identified monetary policy shocks and survey data on financing activities.2022-12-09T13:01:12+00:00enMonetary Policy, Credit Constraints and SME Employment2022-12-09Credit and credit aggregatesEconometric and statistical methodsFirm dynamicsLabour marketsMonetary policyStaff Working Paper 2022-49https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-49.pdfMonetary Policy, Credit Constraints and SME EmploymentJulien ChampagneÉmilien Gouin-BonenfantDecember 2022EE2E3E4E43E5E52GG3Tracking the financial vulnerabilities of households and the housing market
https://www.bankofcanada.ca/2022/11/tracking-the-financial-vulnerabilities-of-households-and-the-housing-market/
The Bank of Canada is publishing a new set of indicators of financial vulnerabilities. This will allow households, the private sector, financial authorities and governments to better understand and monitor the evolution of two key vulnerabilities in the financial system: the elevated level of household indebtedness and high house prices.2022-11-22T11:45:37+00:00enTracking the financial vulnerabilities of households and the housing market2022-11-22Variable-rate mortgages with fixed payments: Examining trigger rates
https://www.bankofcanada.ca/2022/11/staff-analytical-notes-2022-19/
We estimate the share of variable-rate mortgages with fixed payments that reached the so-called trigger rate—the interest rate at which mortgage payments no longer cover the principal. Amid rising interest rates, this share was close to 50% at the end of October 2022 and could potentially reach 65% in 2023.2022-11-22T11:43:13+00:00enVariable-rate mortgages with fixed payments: Examining trigger rates2022-11-22