May 19, 2011
Posts
-
-
May 19, 2011
Lessons from the Use of Extraordinary Central Bank Liquidity Facilities
The recent crisis was characterized by widespread deterioration in funding conditions, as well as impairment of the mechanism through which liquidity is normally redistributed within the financial system. Central banks responded with extraordinary measures. This article examines the provision of liquidity by central banks during the crisis as they adapted their existing facilities and introduced new ones, while encouraging a return to private markets and mitigating moral hazard. A review of this experience illustrates the importance of clear principles for intervention, a flexible operating framework, and clear communication and co-operation by central banks. By exposing the degree of interdependence of financial institutions and markets, the crisis highlighted the need for reforms aimed at improving the infrastructure supporting core funding markets and the liquidity of individual institutions. -
May 19, 2011
Central Bank Collateral Policy: Insights from Recent Experience
The collateral policy of central banks played a critical role during the recent financial crisis, as they worked to bolster liquidity and alleviate the funding pressures facing financial institutions. This article examines central bank collateral policy and discusses three areas in which central banks can use their collateral policy to influence financial market practices: promoting greater transparency for securitized products, improving practices related to credit risk, and reducing procyclicality in the management of market risk. -
May 19, 2011
Supplementary article: Paying with Polymer: Developing Canada’s New Bank Notes
In this article, author Charles Spencer reviews the complex process of developing the new series, which represents a dramatic change for Canada. The leading-edge security features made possible by the new substrate, the cost savings of the move to a polymer base and the environmental advantages of the new notes are also examined. -
Bank Loans for Private and Public Firms in a Credit Crunch
Banks reliance on short-term funding has increased over time. While an effective source of financing in good times, the 2007 financial crisis has exposed the vulnerability of banks and ultimately firms to such a liability structure. -
May 16, 2011
Canada in a Multi-Polar World
Governor Mark Carney discusses the forces that are transforming the global economic landscape and their implications for the Canadian economy. -
May 16, 2011
Canada Is Adjusting to Global Economic Transformation, Says Bank of Canada Governor Mark Carney
While Canada’s economy remains relatively well positioned, it is being buffeted by a significant transformation of the global economy, which is driven by a combination of secular trends and cyclical forces, Bank of Canada Governor Mark Carney said. -
The Canadian Debt-Strategy Model: An Overview of the Principal Elements
The Canadian Debt Strategy Model helps debt managers determine their optimal financing strategy. The model’s code and documentation are available to the public. -
May 9, 2011
External Review of Economic Research Activities at the Bank of Canada and its Response
The review was conducted by an external committee of eminent academic and practising research economists. The committee was asked to gauge the quality of the Bank's research and to make recommendations for improving the Bank's research environment. -
May 6, 2011
Monetary Policy and Resource Mobility
Mark Carney, Governor of the Bank of Canada, comments on “Monetary Policy and Resource Mobility,” a paper by Carl E. Walsh