FSRC - Financial System Research Center

• Complementing the Credit Risk Assessment of Financial Counterparties with Market-Based Indicators

  Staff Analytical Note 2017-15 Guillaume Ouellet Leblanc, Maarten van Oordt

  The Bank’s internal credit risk assessment abilities are regularly enhanced. In this note, we present a recent innovation that extends the set of market-based indicators used in the credit risk assessment of financial counterparties.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit risk management, Financial institutions JEL Code(s): G, G1, G10, G2, G24

• Can the Canadian International Investment Position Stabilize a Slowing Economy?

  Staff Analytical Note 2017-14 Maxime Leboeuf, Chen Fan

  In this note, we find that valuation effects can act as an important stabilizer, strengthening Canada’s net external wealth when its economic outlook worsens relative to that of other countries.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Balance of payments and components, International financial markets JEL Code(s): F, F2, F21, F3, F32

• Policy Rules for Capital Controls

  Staff Working Paper 2017-42 Gurnain Pasricha

  This paper attempts to borrow the tradition of estimating policy reaction functions in monetary policy literature and apply it to capital controls policy literature. Using a novel weekly dataset on capital controls policy actions in 21 emerging economies over the period 1 January 2001 to 31 December 2015, I examine the mercantilist and macroprudential motivations for capital control policies.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rate regimes, Financial stability, Financial system regulation and policies, International topics JEL Code(s): F, F3, F4, F5, G, G0, G1