Persistent Leverage in Portfolio Sorts: An Artifact of Measurement Error? Staff Working Paper 2014-55 Michael Mueller Studies such as Lemmon, Roberts and Zender (2008) demonstrate how stable firms’ capital structures are over time, and raise the question of whether new theories of capital structure are needed to explain these phenomena. Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Financial markets JEL Code(s): C, C1, C18, G, G3, G32
December 11, 2014 Financial reform is essential but must not stifle innovation, says Bank of Canada Governor Stephen S. Poloz Media Relations New York, New York Global financial reforms have made the financial system safer, but regulators must ensure that the new rules do not stifle innovation, Bank of Canada Governor Stephen S. Poloz said today in a speech in New York on the future of the financial industry. “I see such innovation in financial intermediation as essential to fostering regulatory […] Content Type(s): Press, Press releases
December 10, 2014 Cyber Security: Protecting the Resilience of Canada’s Financial System Financial System Review - December 2014 Harold Gallagher, Wade McMahon, Ron Morrow Harold Gallagher, Wade McMahon and Ron Morrow examine the various sources of cyber attacks and their potential for systemic risk. Against this background, the report highlights efforts being made to protect against cyber-security threats, including individual and collective actions by financial institutions and financial market infrastructures, as well as initiatives by international organizations, regulatory authorities and governments. The authors then describe the coordination, under the Joint Operational Resilience Management program, of private and public sector actions in Canada for managing and testing capabilities during severe operational events such as cyber attacks. Content Type(s): Publications, Financial System Review articles Research Topic(s): Financial stability, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): G, G2, G20, G23, G28
December 10, 2014 Bank of Canada says household imbalances remain most important risk to financial stability Media Relations Ottawa, Ontario Risks to Canada’s financial system have not increased in the past six months, but high consumer debt loads and imbalances in the housing market remain a concern, the Bank of Canada said today in itsbiannual Financial System Review (FSR). “We judge that the probability of an adverse shock has eased since our June FSR,” said […] Content Type(s): Press, Press releases
December 8, 2015 Framework for Conducting Monetary Policy at Low Interest Rates This document outlines a series of monetary policy measures that could be deployed in a very low interest rate environment. Content Type(s): Background materials Research Topic(s): Monetary policy
December 8, 2015 Results of the 28-day 8 December 2015 Term Repo Operation Results of today's term repo operation. Content Type(s): Press, Market notices
Estimating Canada’s Effective Lower Bound Staff Analytical Note 2015-2 Jonathan Witmer, Jing Yang In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Central bank research, Monetary policy framework, Monetary policy implementation JEL Code(s): D, D5, D53, E, E4, E41, E43, E5, E58
December 7, 2015 Bank of Canada Announces Details of its Term Repo Operation The Bank of Canada announced today that it will conduct a term repo operation. Content Type(s): Press, Market notices