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2378
result(s)
Mandatory Retention Rules and Bank Risk
Staff Working Paper 2023-3
Yuteng Cheng
This paper studies, theoretically and empirically, the unintended consequences of mandatory retention rules in securitization. It proposes a novel model showing that while retention strengthens monitoring, it may also encourage banks to shift risk.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit risk management,
Financial institutions,
Financial system regulation and policies
JEL Code(s):
G,
G2,
G21,
G28
Geographical and Cultural Proximity in Retail Banking
Staff Working Paper 2023-2
Santiago Carbo-Valverde,
Héctor Pérez Saiz,
Hongyu Xiao
This paper measures how both geographical and cultural proximity of bank branches affect household credit choice and pricing. For credit products that require high levels of ex-ante screening, we find that both proximities can complement each other in reducing the cost of providing soft information, thereby increasing credit access.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial institutions,
Financial services
JEL Code(s):
D,
D8,
D82,
D83,
G,
G2,
G20,
G21,
R,
R2,
R22,
Z,
Z1,
Z10,
Z13
The 2021–22 Merchant Acceptance Survey Pilot Study
Staff Discussion Paper 2023-1
Angelika Welte,
Joy Wu
The rise in digital payment innovations has spurred a discussion about the future of cash at the point of sale. The Bank conducted the 2021–22 Merchant Acceptance Survey Pilot Study to study trends in merchant cash acceptance and monitor conditions for the potential issuance of a central bank digital currency.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C8,
D,
D2,
D22,
E,
E4,
L,
L2
Simulating Intraday Transactions in the Canadian Retail Batch System
Staff Working Paper 2023-1
Nellie Zhang
This paper proposes a unique approach to simulate intraday transactions in the Canadian retail payments batch system when such transactions are unobtainable. The simulation procedure has potential for helping with data-deficient problems where only high-level aggregate information is available.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Payment clearing and settlement systems
JEL Code(s):
C,
C6,
C63,
E,
E4,
E42,
E5,
E58
2021 Methods-of-Payment Survey Report
Staff Discussion Paper 2022-23
Christopher Henry,
Matthew Shimoda,
Julia Zhu
We present results from the 2021 Methods-of-Payment Survey, including updated payment shares. We highlight long-term trends and provide additional context for results with respect to the COVID-19 pandemic.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Financial services
JEL Code(s):
D,
D8,
D83,
E,
E4,
E41
Improving the Efficiency of Payments Systems Using Quantum Computing
Staff Working Paper 2022-53
Christopher McMahon,
Donald McGillivray,
Ajit Desai,
Francisco Rivadeneyra,
Jean-Paul Lam,
Thomas Lo,
Danica Marsden,
Vladimir Skavysh
We develop an algorithm and run it on a hybrid quantum annealing solver to find an ordering of payments that reduces the amount of system liquidity necessary without substantially increasing payment delays.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial services,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C6,
C61,
C63,
D,
D8,
D83,
E,
E4,
E42,
E5,
E58
Are Temporary Oil Supply Shocks Real?
Staff Working Paper 2022-52
Johan Brannlund,
Geoffrey R. Dunbar,
Reinhard Ellwanger
Hurricanes disrupt oil production in the Gulf of Mexico because producers shut in oil platforms to safeguard lives and prevent damage. We examine the effects of these temporary oil supply shocks on real economic activity in the United States.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E32,
Q,
Q3,
Q31,
Q4,
Q41,
Q43
Financial Constraints and Corporate Investment in China
Staff Discussion Paper 2022-22
Kun Mo,
Michel Soudan
Financial constraints deter firms from pursuing optimal investment plans. In China, we find privately owned firms face greater financial constraints than state-owned enterprises (SOEs). This can be explained by our finding that lenders appear less concerned about the credit risk of SOEs, which causes distortions in the allocation of credit.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Firm dynamics
JEL Code(s):
E,
E2,
E22,
G,
G1,
G3
CANVAS: A Canadian Behavioral Agent-Based Model
Staff Working Paper 2022-51
Cars Hommes,
Mario He,
Sebastian Poledna,
Melissa Siqueira,
Yang Zhang
The Bank of Canada’s current suite of models faces challenges in addressing network effects that integrate household and firm-level heterogeneity and their behaviours. We develop CANVAS, a Canadian behavioural agent-based model to contribute to the Bank’s next-generation modelling effort. CANVAS improves forecasting performance and expands capacity for model-based scenario analysis.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Econometric and statistical methods,
Economic models,
Firm dynamics,
Inflation and prices
JEL Code(s):
C,
D,
D2,
D22,
D8,
D83,
E,
E1,
E17