June 20, 2017 Governor Poloz unveils new Bank of Canada Museum ahead of public opening on July 1, 2017 Media Relations Ottawa, Ontario Governor Stephen S. Poloz today welcomed special guests from the government, business and the tourism sectors for a preview of the Bank of Canada Museum, which is opening soon. Content Type(s): Press, Press releases
June 8, 2017 Household vulnerabilities have moved higher, but the financial system remains resilient Media Relations Ottawa, Ontario Household indebtedness and housing market imbalances—the most important vulnerabilities for the Canadian financial system—have moved higher over the past six months, the Bank of Canada said today in its Financial System Review (FSR). Content Type(s): Press, Press releases
June 8, 2017 Using Market-Based Indicators to Assess Banking System Resilience Financial System Review - June 2017 Cameron MacDonald, Maarten van Oordt This report reviews the use of quantitative tools to gauge market participants’ assessment of banking system resilience. These measures complement traditional balance-sheet metrics and suggest that markets consider large Canadian banks to be better placed to weather adverse shocks than banks in other advanced economies. Compared with regulatory capital ratios, however, the measures suggest less improvement in banking system resilience since the pre-crisis period. Content Type(s): Publications, Financial System Review articles Research Topic(s): Financial institutions, Financial markets, Financial stability JEL Code(s): G, G0, G01, G1, G10, G2, G21
Volatility Risk and Economic Welfare Staff Working Paper 2017-20 Shaofeng Xu This paper examines the effects of time-varying volatility on welfare. I construct a tractable endogenous growth model with recursive preferences, stochastic volatility, and capital adjustment costs. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Economic models JEL Code(s): E, E2, E3
December 23, 2016 Weekly Financial Statistics - 23 December 2016 Content Type(s): Publications, Historical: Weekly Financial Statistics
Monetary Policy, Private Debt and Financial Stability Risks Staff Working Paper 2016-59 Gregory Bauer, Eleonora Granziera Can monetary policy be used to promote financial stability? We answer this question by estimating the impact of a monetary policy shock on private-sector leverage and the likelihood of a financial crisis. Impulse responses obtained from a panel VAR model of 18 advanced countries suggest that the debt-to-GDP ratio rises in the short run following an unexpected tightening in monetary policy. Content Type(s): Staff research, Staff working papers Research Topic(s): Credit and credit aggregates, Financial stability, Monetary policy, Monetary policy transmission JEL Code(s): C, C2, C21, C23, E, E5, E52, E58