Staff analytical notes

The Contingent Term Repo Facility: Lessons learned and an update

Staff Analytical Note 2025-12 Jessie Ziqing Chen, Parnell Chu, Scott Kinnear
In 2024, the Bank of Canada reviewed and updated its Contingent Term Repo Facility policy, incorporating lessons learned from the COVID-19 pandemic and other global market developments, such as the UK gilt crisis in September 2022. This paper accompanies the March 17, 2025, Contingent Term Repo Facility market notice and provides background information and further details about the design of the revised policy.
Content Type(s): Staff research, Staff analytical notes Research Topic(s): Central bank research, Financial stability, Lender of last resort JEL Code(s): E, E5, E58, F, F6, F68, G, G0, G01, G2, G23

Potential netting benefits from expanded central clearing in Canada’s fixed-income market

Staff Analytical Note 2022-8 Jessie Ziqing Chen, Johannes Chen, Shamarthi Ghosh, Manu Pandey, Adrian Walton
We assess whether more central clearing would enhance the resilience of Canadian fixed-income markets. Our analysis estimates the potential benefits of balance sheet netting under scenarios where central clearing is expanded to new participants.
Content Type(s): Staff research, Staff analytical notes Research Topic(s): Credit risk management, Financial institutions, Financial markets JEL Code(s): D, D4, G, G1, G12, G2, G21, G29

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