Financial institutions

• Monetary Policy Spillover to Small Open Economies: Is the Transmission Different under Low Interest Rates?

  Staff Working Paper 2021-62 Jin Cao, Valeriya Dinger, Tomás Gómez, Zuzana Gric, Martin Hodula, Alejandro Jara, Ragnar Juelsrud, Karolis Liaudinskas, Simona Malovaná, Yaz Terajima

  Does the transmission of monetary policy change when interest rates are low or negative? We shed light on this question by analyzing the international bank lending channels of monetary policy using regulatory data on banks from four small open economies: Canada, Chile, the Czech Republic and Norway.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, International topics, Monetary policy transmission JEL Code(s): E, E4, E43, E5, E52, E58, F, F3, F34, F4, F42, G, G2, G21, G28

• The Countercyclical Capital Buffer and International Bank Lending: Evidence from Canada

  Staff Working Paper 2021-61 David Xiao Chen, Christian Friedrich

  We examine the impact of the CCyB on foreign lending activities of Canadian banks. We show that the announcement of a tightening in another country’s CCyB leads to a decrease in the growth rate of cross-border lending between Canadian banks and borrowers in that other country.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit risk management, Financial institutions, Financial stability, Financial system regulation and policies, International topics JEL Code(s): E, E3, E32, F, F2, F21, F3, F32, G, G2, G21, G28
• November 23, 2021

  Checking up on Canada’s financial system

  Speech summary Paul Beaudry Ontario Securities Commission Toronto, Ontario

  Deputy Governor Paul Beaudry speaks about the strength and resilience of the financial system throughout the COVID-19 pandemic and economic recovery. He also outlines key vulnerabilities and risks going forward.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Asset pricing, Central bank research, Climate change, Coronavirus disease (COVID-19), Financial institutions, Financial stability, Housing, Interest rates
• November 23, 2021

  Financial stability through the pandemic and beyond

  Remarks (delivered virtually) Paul Beaudry OSC Dialogue, Ontario Securities Commission Toronto, Ontario

  Deputy Governor Paul Beaudry provides an update on financial vulnerabilities and risks in Canada, including those stemming from the COVID-19 pandemic.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Asset pricing, Central bank research, Climate change, Coronavirus disease (COVID-19), Financial institutions, Financial stability, Housing, Interest rates

• Are Bank Bailouts Welfare Improving?

  Staff Working Paper 2021-56 Malik Shukayev, Alexander Ueberfeldt

  Financial sector bailouts, while potentially beneficial during a crisis, might lead to excessive risk taking if anticipated. Taking expectations and aggregate risk implications into account, we show that bailouts can be welfare improving, but only if capital adequacy constraints are sufficiently tight.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): D, D6, D62, E, E3, E32, E4, E44, G, G0, G01