Bio

Adi Mordel is a Principal Economist in the Financial Stability Department at the Bank of Canada. His current research centers on the link between financial distress and the real economy, with a particular interest on household lending and consumption. Other research focuses on the effects of public guarantees and incentive alignment in shadow banking activities. Adi Mordel received his PhD in Finance from Drexel University.

Research Field(s): Banking Empirical Finance Household Finance

Staff analytical notes

The Characteristics of Uninsured Mortgages and their Securitization Potential

Staff Analytical Note 2018-24 Adi Mordel, Maria teNyenhuis
Following changes to housing finance policies that target insured mortgages, uninsured mortgage credit has been growing. This robust growth creates a larger pool of mortgages that may be suitable for private-label residential mortgage-backed securities (RMBS).
Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial system regulation and policies, Wholesale funding JEL Code(s): G, G2, G21, G28

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Staff discussion papers

Prudential Liquidity Regulation in Banking—A Literature Review

Staff Discussion Paper 2018-8 Adi Mordel
Prudential liquidity requirements are a relatively recent regulatory tool on the international front, introduced as part of the Basel III accord in the form of a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR). I first discuss the rationale for regulating bank liquidity by highlighting the market failures that it addresses while reviewing key theoretical contributions to the literature on the motivation for prudential liquidity regulation.
Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial system regulation and policies JEL Code(s): G, G2, G21, G28

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Staff working papers

Flight from Safety: How a Change to the Deposit Insurance Limit Affects Households’ Portfolio Allocation

Staff Working Paper 2019-29 H. Evren Damar, Reint Gropp, Adi Mordel
Deposit insurance protects depositors from failing banks, thus making insured deposits risk-free. When a deposit insurance limit is increased, some deposits that previously were uninsured become insured, thereby increasing the share of risk-free assets in households’ portfolios. This increase cannot simply be undone by households, because to invest in uninsured deposits, a household must first invest in insured deposits up to the limit. This basic insight is the starting point of the analysis in this paper.
Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial system regulation and policies JEL Code(s): D, D1, D14, G, G2, G21, G28, L, L5, L51

International Banking and Cross-Border Effects of Regulation: Lessons from Canada

Staff Working Paper 2016-34 H. Evren Damar, Adi Mordel
We study how changes in prudential requirements affect cross-border lending of Canadian banks by utilizing an index that aggregates adjustments in key regulatory instruments across jurisdictions.
Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): F, F3, F34, G, G0, G01, G2, G21

Banks’ Financial Distress, Lending Supply and Consumption Expenditure

Staff Working Paper 2014-7 H. Evren Damar, Reint Gropp, Adi Mordel
The paper employs a unique identification strategy that links survey data on household consumption expenditure to bank-level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures.
Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Domestic demand and components, Financial institutions JEL Code(s): E, E2, E21, E4, E44, G, G0, G01, G2, G21

The Ex-Ante Versus Ex-Post Effect of Public Guarantees

Staff Working Paper 2012-22 H. Evren Damar, Reint Gropp, Adi Mordel
In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks’ credit fundamentals.
Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G2, G21, G28, G3, G32

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Bank publications

Financial System Review articles

December 15, 2015

Residential Mortgage Securitization in Canada: A Review

Financial System Review - December 2015 Adi Mordel
Residential mortgage securitization plays an important role in the Canadian system of housing finance, especially given the rising share of government-supported (i.e., public) securitization over the past 15 years. Mordel and Stephens analyze the evolution of two types of mortgage securitization in Canada— private and public — focusing in particular on the underlying public policy and economic benefits of the latter. They review the potential implications of the extent of public securitization and conclude with a discussion of policies that could be considered to reinvigorate private securitization in Canada.
Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial stability, Financial system regulation and policies, Housing JEL Code(s): G, G2, G28

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Journal publications

Refereed journals

  • " Banks' Funding Stress, Lending Supply and Consumption Expenditure"
    (with Evren Damar and Reint Gropp). Journal of Money, Credit and Banking. forthcoming
  • “Asset Sales, Recourse, and Investor Reactions to Initial Securitizations: Evidence why Off-balance Sheet Accounting Treatment does not Remove On-balance Sheet Financial Risk”
    ((with Eric Higgins and Joseph Mason). Journal of Risk Finance. forthcoming
  • "International Banking and Cross-Border Effects of Regulation: Lessons from Canada"
    (with Evren Damar). March 2017. International Journal of Central Banking, vol. 13(2), pages 35-64.

Other

Publications

  • "The Ex Ante versus Ex Post Effect of Public Guarantees"
    (with Evren Damar and Reint Gropp), 2013. in: The Role of Central Banks in Financial Stability: How Has It Changed? Chapter 18, pages 347-364. World Scientific Publishing Co. Pte. Ltd.