Find our research on the financial system by keyword, author, content type, JEL code, topic or date of publication.
452
result(s)
Financial Constraint and Productivity: Evidence from Canadian SMEs
Staff Working Paper 2016-44
Shutao Cao,
Danny Leung
The degree to which financial constraint is binding is often not directly observable in commonly used business data sets (e.g., Compustat). In this paper, we measure and estimate the likelihood of a firm being constrained by external financing using a data set of small- and medium-sized Canadian firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Productivity
JEL Code(s):
D,
D2,
D24,
G,
G3,
G32,
L,
L2,
L25
Using Speed and Credit Limits to Address the Procyclicality of Initial Margin at Central Counterparties
Staff Discussion Paper 2016-18
Nikil Chande,
Nicholas Labelle
This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Financial stability,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
G,
G1,
G18
On the Value of Virtual Currencies
Staff Working Paper 2016-42
Wilko Bolt,
Maarten van Oordt
This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Digital currencies and fintech,
Exchange rates
JEL Code(s):
E,
E4,
E42,
E5,
E51,
F,
F3,
F31,
G,
G1
The Impact of Macroprudential Housing Finance Tools in Canada: 2005–10
Staff Working Paper 2016-41
Jason Allen,
Timothy Grieder,
Brian Peterson,
Tom Roberts
This paper combines loan-level administrative data with household-level survey data to analyze the impact of recent macroprudential policy changes in Canada using a microsimulation model of mortgage demand of first-time homebuyers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial system regulation and policies
JEL Code(s):
C,
C6,
C63,
D,
D1,
D14,
G,
G2,
G28
Leaning Within a Flexible Inflation-Targeting Framework: Review of Costs and Benefits
Staff Discussion Paper 2016-17
Denis Gorea,
Oleksiy Kryvtsov,
Tamon Takamura
This note examines the merits of monetary policy adjustments in response to financial stability concerns, taking into account changes in the state of knowledge since the renewal of the inflation-targeting agreement in 2011. A key financial system vulnerability in Canada is elevated household indebtedness: as more and more households are nearing their debt-capacity limits, the likelihood and severity of a large negative correction in housing markets are also increasing.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial stability,
Monetary policy framework
JEL Code(s):
E,
E0,
E4,
E44,
E5,
E52,
E58,
G,
G1,
G18
Assessment of the Effects of Macroprudential Tightening in Canada
Staff Analytical Note 2016-12
Martin Kuncl
During the period of 2008 to 2012, the rules for government-backed mortgage insurance were tightened on four occasions. In this note, we estimate the effects through a simple econometric exercise using a vector error-correction model (VECM).
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Financial system regulation and policies,
Housing
JEL Code(s):
C,
C3,
C32,
E,
E6,
E65,
G,
G2,
G28
Are Counterparty Arrangements in Reinsurance a Threat to Financial Stability?
Staff Working Paper 2016-39
Matt Davison,
Darrell Leadbetter,
Bin Lu,
Jane Voll
Interconnectedness among insurers and reinsurers at a global level is not well understood and may pose a significant risk to the sector, with implications for the macroeconomy. Models of the complex interactions among reinsurers and with other participants in the financial system and the real economy are at a very early stage of development.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial services,
Financial stability,
Financial system regulation and policies
JEL Code(s):
C,
C6,
C63,
G,
G1,
G10,
G15,
G18,
G2,
G22,
G28
The Global Financial Cycle, Monetary Policies and Macroprudential Regulations in Small, Open Economies
Staff Working Paper 2016-38
Gregory Bauer,
Gurnain Pasricha,
Rodrigo Sekkel,
Yaz Terajima
This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across borders.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Housing,
International financial markets,
Monetary policy framework
JEL Code(s):
E,
E4,
E42,
E43,
E44,
E5,
E52,
F,
F4,
F41
Credit Risk and Collateral Demand in a Retail Payment System
Staff Discussion Paper 2016-16
Héctor Pérez Saiz,
Gabriel Xerri
The recent financial crisis has led to the development of new regulations to control risk in designated payment systems, and the implementation of new credit risk management standards is one of the key issues. In this paper, we study various credit risk management schemes for the Canadian retail payment system (ACSS) that are designed to cover the exposure of a defaulting member.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Econometric and statistical methods,
Financial stability,
Payment clearing and settlement systems
JEL Code(s):
C,
C5,
C58,
G,
G2,
G21,
G23