Credit and credit aggregates

• The Impact of Recent Policy Changes on the Canadian Mortgage Market

  Staff Analytical Note 2018-35 Olga Bilyk, Maria teNyenhuis

  Recent policy changes are having a clear impact on the mortgage market. The number of new, highly indebted borrowers has fallen, and overall mortgage activity has slowed significantly.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Interest rates, Recent economic and financial developments JEL Code(s): D, D1, E, E4, G, G2, G21, G28

• Non-Performing Loans, Fiscal Costs and Credit Expansion in China

  Staff Working Paper 2018-53 Huixin Bi, Yongquan Cao, Wei Dong

  This paper studies how the credit expansion policy pursued by the Chinese government in an effort to stimulate its economy in the post-crisis period affects bank–firm loan contracts and the macroeconomy. We build a structural model with financial frictions in which the optimal loan contract reflects the trade-off between leverage and the probability of default.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Fiscal policy, International topics JEL Code(s): E, E4, E44, E6, E62