Supervising Financial Regulators Staff Working Paper 2016-52 Josef Schroth How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly. Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Regional economic developments JEL Code(s): E, E4, E44, G, G2, G28, H, H7
November 25, 2016 Bank of Canada announces finalists for the second annual Governor’s Challenge Media Relations Ottawa, Ontario NOTE TO EDITORS: This press release has been revised to reflect the new date of the final round of The Governor’s Challenge, 4 February 2017. The Bank of Canada announced the finalists for the 2016–17 edition of The Governor’s Challenge, a student competition in which teams simulate the role of advisor to the Bank’s Governing Council. Content Type(s): Press, Press releases Source(s): The Governor's Challenge
November 24, 2016 Banking and Financial Statistics - November 2016 Content Type(s): Publications, Historical: Banking and Financial Statistics
Central Bank Digital Currencies: A Framework for Assessing Why and How Staff Discussion Paper 2016-22 Ben Fung, Hanna Halaburda Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks. Content Type(s): Staff research, Staff discussion papers Topic(s): Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42
November 24, 2016 #bankNOTEable Canadian woman will be revealed on 8 December, Bank of Canada publishes short list of five Media Relations Ottawa, Ontario On Thursday, 8 December 2016, the Minister of Finance and the Governor of the Bank of Canada will reveal which iconic Canadian woman will be featured on the next regularly circulating bank note, expected in 2018. Content Type(s): Press, Press releases
The Share of Systematic Variations in the Canadian Dollar—Part I Staff Analytical Note 2016-15 Jean-Sébastien Fontaine, Guillaume Nolin In this analytical note we show that the share of the systematic variations in the Canadian dollar has risen significantly in the past two decades. Systematic variations in the exchange rate are shared with other currencies. This parallels the equity market, where variations in the price of a given stock are shared with variations in the prices of other stocks. Content Type(s): Staff research, Staff analytical notes Topic(s): Exchange rates JEL Code(s): F, F3, F31
Firm-Specific Shocks and Aggregate Fluctuations Staff Working Paper 2016-51 Leonid Karasik, Danny Leung, Ben Tomlin In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Firm dynamics, Market structure and pricing JEL Code(s): E, E2, E22, E23, E24, E3, L, L6