Bio
Virginie Traclet was appointed Deputy Managing Director of the Canadian Economic Analysis (CEA) department in May 2024. In this capacity, she contributes to the strategic direction and management of the department and oversees the department’s work related to surveys and the Monetary Policy Report. Prior to this role, she was Deputy Managing Director of the Financial Markets Department.
She joined the Bank in 2002 as a Senior Economist and has since held increasingly senior positions in various departments. She has worked on both financial stability and monetary policy issues. She holds a PhD in Economics from the University of Rennes 1 (France).
Staff working papers
Technical reports
The Framework for Risk Identification and Assessment
Risk assessment models are an important component of the Bank’s analytical tool kit for assessing the resilience of the financial system. We describe the Framework for Risk Identification and Assessment (FRIDA), a suite of models developed at the Bank of Canada to quantify the impact of financial stability risks to the broader economy and a range of financial system participants (households, businesses and banks).Bank publications
Bank of Canada Review articles
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.Financial System Hub articles
November 14, 2018
Financial System Resilience and House Price Corrections
We use models to better understand and assess how risks could affect the financial system. In our hypothetical scenario, a house price correction and elevated financial stress weigh on the economy. An increased number of households and businesses have difficulty repaying loans. Nonetheless, the large banks remain resilient.Financial System Review articles
June 12, 2014
Stress Testing the Canadian Banking System: A System-Wide Approach
Stress testing is an important tool used by financial authorities and entities around the world to evaluate potential risks to the financial system. Kartik Anand, Guillaume Bédard-Pagé and Virginie Traclet discuss different stress-testing approaches, with emphasis on the innovative and analytically rigorous model developed by the Bank of Canada: the MacroFinancial Risk Assessment Framework (MFRAF). They also present the stress-test results obtained in the context of the 2013 Canada Financial Sector Assessment Program led by the International Monetary Fund, including the important contributions made by the use of MFRAF in the exercise.Journal publications
“Accounting for Amplification Mechanisms in Bank Stress Test Models at the Bank of Canada” (with G. Halaj) in Handbook of Financial Stress Testing, Edited by J. Doyne Farmer, Alissa M. Kleinnijenhuis, Til Schuermann and Thom Wetzer, Cambridge University Press, 2022, pp. 484 - 510.