Bank of Canada Review - Spring 2007

April 14, 2007
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BoC Review - Spring 2007
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Cover page

Gas Cards

All gas cards pictured here are part of the National Currency Collection of the Bank of Canada.
Content Type(s): Publications, Bank of Canada Review
April 15, 2007

Renewing the International Monetary Fund: A Review of the Issues

Bank of Canada Review - Spring 2007 Danielle Lecavalier, Eric Santor
Given the rapid and ongoing integration of the global economy, the International Monetary Fund needs to renew its role, governance structure, and functions if it is to maintain its relevance as the institution charged with promoting global financial stability. Lecavalier and Santor examine the areas of possible reform, including quota, voice, and representation; internal governance; surveillance; lending instruments; finances; and the Fund's role in low-income countries. They also review current Bank of Canada research that supports these reform efforts, including an integrated framework for IMF surveillance recently developed at the Bank.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics
April 14, 2007

The Canadian Overnight Market: Recent Evolution and Structural Changes

Bank of Canada Review - Spring 2007 Christopher Reid
Since 1997 when the Bank of Canada last published a review of the Canadian overnight market, several important changes have affected the market's structure and dynamics. Reid provides a current overview of the market, examining the financial instruments, market transparency and flows, and the collateralized overnight rate as it has evolved since the introduction of the Large Value Transfer System and the fixed announcement dates. Other significant influences include changes in market practices regarding risk management, the rise of securities lending, the increased demand for collateral, and the Bank of Canada's measures to reinforce the target for the overnight rate.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Market structure and pricing, Monetary policy framework, Monetary policy implementation
April 13, 2007

The Large-Value Payments System: Insights from Selected Bank of Canada Research

Bank of Canada Review - Spring 2007 Neville Arjani, Walter Engert
Given the Bank of Canada's strong interest in the safe and efficient operation of major clearing and settlement systems, the Bank maintains a rigorous research agenda as a means of informing payments system policy and oversight. In this article, Arjani and Engert review recent research undertaken by Bank staff concerning the risk and efficiency of the Large Value Transfer System (LVTS). Based on the findings from this research, the authors conclude that the design of the LVTS strikes an effective balance between risk and efficiency. The article also demonstrates the increased use of simulation analysis as a tool for conducting payments system research. A brief summary of the Bank's oversight strategy for systemically important payments systems is also provided. Goals for future research are noted as well, including modelling of participant behaviour and continued external collaboration with other researchers.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial institutions, Payment clearing and settlement systems