Macroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability? Staff Working Paper 2018-55 Toni Ahnert, Kristin Forbes, Christian Friedrich, Dennis Reinhardt Can macroprudential foreign exchange (FX) regulations on banks reduce the financial and macroeconomic vulnerabilities created by borrowing in foreign currency? To evaluate the effectiveness and unintended consequences of macroprudential FX regulations, we develop a parsimonious model of bank and market lending in domestic and foreign currency and derive four predictions. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial institutions, Financial system regulation and policies, International financial markets JEL Code(s): F, F3, F32, F34, G, G1, G15, G2, G21, G28
November 15, 2018 The Bank of Canada, Bank of England and Monetary Authority of Singapore share assessment on emerging opportunities for digital transformation in cross-border payments This joint press release describes a preliminary report on the findings of the fourth phase of the Project Jasper research initiative. Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech
November 14, 2018 Bank of Canada launches digital hub for promoting a stable and efficient financial system Media Relations Ottawa, Ontario Today the Bank of Canada launched the Financial System Hub, a dedicated space on the Bank’s website for timely analysis and research on financial stability issues. Content Type(s): Press, Press releases
November 14, 2018 Financial System Research Centre The FSRC promotes financial system research in Canada to inform policy and improve the economic and financial well-being of Canadians.
Modelling the Macrofinancial Effects of a House Price Correction in Canada Staff Analytical Note 2018-36 Thibaut Duprey, Xuezhi Liu, Cameron MacDonald, Maarten van Oordt, Sofia Priazhkina, Xiangjin Shen, Joshua Slive We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial stability, Housing JEL Code(s): E, E2, E27, E3, E37, E4, E44, G, G2, G21
November 14, 2018 Financial System Survey Highlights—November 2018 This article presents the key results from the autumn 2018 Bank of Canada Financial System Survey, conducted between September 24 and October 12, 2018. The survey collects expert opinions from financial system experts on the risks to, and resilience of, the Canadian financial system. Content Type(s): Publications, Financial System Survey
November 14, 2018 Financial System Resilience and House Price Corrections Thibaut Duprey, Xuezhi Liu, Cameron MacDonald, Maarten van Oordt, Sofia Priazhkina, Xiangjin Shen, Joshua Slive, Virginie Traclet We use models to better understand and assess how risks could affect the financial system. In our hypothetical scenario, a house price correction and elevated financial stress weigh on the economy. An increased number of households and businesses have difficulty repaying loans. Nonetheless, the large banks remain resilient. Content Type(s): Publications, Financial System Hub articles
The Impact of Recent Policy Changes on the Canadian Mortgage Market Staff Analytical Note 2018-35 Olga Bilyk, Maria teNyenhuis Recent policy changes are having a clear impact on the mortgage market. The number of new, highly indebted borrowers has fallen, and overall mortgage activity has slowed significantly. Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Interest rates, Recent economic and financial developments JEL Code(s): D, D1, E, E4, G, G2, G21, G28