Staff analytical notes are short articles that focus on topical issues relevant to the current economic and financial context.
234
result(s)
A Financial Stability Analysis of Zombie Firms in Canada
Staff Analytical Note 2020-3
Timothy Grieder,
Juan Ortega
We measure the prevalence of zombie firms in Canada and assess how they could potentially affect the financial system.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Financial stability,
Sectoral balance sheet
JEL Code(s):
G,
G3,
G32
The Effect of Mortgage Rate Resets on Debt: Evidence from TransUnion (Part I)
Staff Analytical Note 2020-2
Katya Kartashova
This note studies how decreases in mortgage rates affect the behaviour of borrowers in terms of spending on durable goods and repaying debt.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Housing,
Interest rates,
Monetary policy,
Monetary policy transmission
JEL Code(s):
D,
D1,
D12,
D14,
E,
E4,
E43,
E5,
E52,
G,
G2,
G21,
R,
R3,
R31
Characterizing Breadth in Canadian Economic Activity
Staff Analytical Note 2020-1
Taylor Webley,
Carla Valerio,
Maureen MacIsaac
Real growth in gross domestic product tends to be meaningfully higher when a large share of industries and demand components are growing—that is, when growth is broad across many fronts.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Business fluctuations and cycles
JEL Code(s):
E,
E3,
E32
Creations and Redemptions in Fixed-Income Exchange-Traded Funds: A Shift from Bonds to Cash
Staff Analytical Note 2019-34
Rohan Arora,
Sébastien Betermier,
Guillaume Ouellet Leblanc,
Adriano Palumbo,
Ryan Shotlander
The creation and redemption activity of fixed-income exchange-traded funds listed in the United States has shifted. Funds of established issuers have traditionally exchanged their shares for baskets of bonds. In contrast, young funds managed by new issuers tend to create and redeem their shares almost exclusively in cash. Cash transactions imply that new funds are taking on exposure to liquidity risk. This has implications for financial stability.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
Furor over the Fed : Presidential Tweets and Central Bank Independence
Staff Analytical Note 2019-33
Antoine Camous,
Dmitry Matveev
We illustrate how market data can be informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about monetary policy decisions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Credibility,
Financial markets,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E5,
E52,
E58
The Cyber Incident Landscape
Staff Analytical Note 2019-32
Nikil Chande,
Dennis Yanchus
The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G2,
G28,
M,
M1,
M15,
O,
O3,
O33,
O38
2018 Merchant Acceptance Survey
Staff Analytical Note 2019-31
Kim Huynh,
Gradon Nicholls,
Mitchell Nicholson
In 2015, the Bank of Canada surveyed merchants and found that cash was nearly universally accepted (Fung, Huynh and Kosse 2017). Since 2015, retail payments in Canada have become increasingly digitalized, as many Canadians have adopted digital payment innovations like contactless cards and Interac e-Transfer.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C8,
D,
D2,
D22,
E,
E4,
L,
L2
Assessment of Liquidity Creation in the Canadian Banking System
Staff Analytical Note 2019-30
Annika Gnann,
Sahika Kaya
Liquidity creation is a fundamental function of banks. It provides the public with easy access to funds. These funds are important because they allow households and businesses to consume and invest. In this note, we measure liquidity creation by Canadian financial institutions from the first quarter of 2012 to the second quarter of 2019, using a methodology suggested by Berger and Bouwman (2009) and known as the BB measure.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial institutions,
Financial stability,
Monetary and financial indicators
JEL Code(s):
G,
G2,
G21,
G28,
G3,
G32
Cashless Bank Branches in Canada
Staff Analytical Note 2019-29
Walter Engert,
Ben Fung
Cashless or tellerless bank branches have proliferated in several countries in recent years. In a cashless bank branch, teller or counter services such as cash withdrawals, deposits and cheque-cashing are not available.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E51