June 9, 2016 Financial System Review - June 2016 The Financial System Review concludes that the overall level of risk to Canada’s financial system is largely unchanged from six months ago. While household vulnerabilities have moved higher, the ongoing economic recovery in Canada means that the overall risk remains the same. The Bank highlights three vulnerabilities in the financial system: the elevated level of household indebtedness, imbalances in some regional housing markets and the fragility of liquidity in fixed-income markets. Content Type(s): Publications, Financial Stability Report
Timing of Banks’ Loan Loss Provisioning During the Crisis Staff Working Paper 2016-27 Leo de Haan, Maarten van Oordt We estimate a panel error correction model for loan loss provisions, using unique supervisory data on flow of funds into and out of the allowance for loan losses of 25 Dutch banks in the post-2008 crisis period. We find that these banks aim for an allowance of 49% of impaired loans. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability JEL Code(s): G, G0, G01, G2, G21, G3, G32
June 4, 2016 Monetary/fiscal policy mix has implications for debt and financial stability, Governor Poloz says Media Relations Ottawa, Ontario In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector debt levels, which can impact financial stability. Content Type(s): Press, Press releases
The Doug Purvis Memorial Lecture—Monetary/Fiscal Policy Mix and Financial Stability: The Medium Term Is Still the Message Staff Discussion Paper 2016-13 Stephen S. Poloz In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector debt levels, which can impact financial stability. Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Financial stability, Fiscal policy, Monetary policy framework JEL Code(s): E, E3, E37, E5, E6, E63
June 4, 2016 Monetary/Fiscal Policy Mix and Financial Stability: The Medium Term Is Still the Message Lecture Stephen S. Poloz Canadian Economics Association Ottawa, Ontario Governor Stephen S. Poloz discusses how the mix of monetary and fiscal policies in an economy has important implications for debt levels and financial stability over the medium term. Content Type(s): Press, Speeches and appearances, Lectures Topic(s): Central bank research, Economic models, Fiscal policy, Inflation targets, Monetary policy, Monetary policy framework