June 20, 2010 Securitized Products, Disclosure, and the Reduction of Systemic Risk Financial System Review - June 2010 Carolyn A. Wilkins, Scott Hendry, Stéphane Lavoie Content Type(s): Publications, Financial System Review articles
January 20, 2012 A Fundamental Review of Capital Charges Associated with Trading Activities Financial System Review - December 2011 Grahame Johnson Content Type(s): Publications, Financial System Review articles
Security Transaction Taxes and Market Quality Staff Working Paper 2011-26 Anna Pomeranets, Daniel G. Weaver We examine nine changes in the New York State Security Transaction Taxes (STT) between 1932 and 1981. We find that imposing or increasing an STT results in wider bidask spreads, lower volume, and increased price impact of trades. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial markets, Market structure and pricing JEL Code(s): C, C4, C43, G, G1, G10, G12
November 23, 2011 Canada’s Inflation-Targeting Regime Enhances Economic Well-Being of Canadians, Says Bank of Canada Governor Mark Carney Media Relations Montréal, Quebec The effectiveness of Canada’s inflation-targeting regime, adopted in 1991, is well established, and partly responsible for the strength and relative stability of the Canadian economy, Governor Mark Carney of the Bank of Canada said today. “Over the past twenty years, Canadians have enjoyed a more stable and prosperous economic environment. Even during the recent crisis, […] Content Type(s): Press, Press releases
November 17, 2011 Liquidity Provision and Collateral Haircuts in Payments Systems Bank of Canada Review - Autumn 2011 James Chapman, Jonathan Chiu, Miguel Molico Central banks play a pivotal role in well-functioning payments systems by providing liquidity via collateralized lending. This article discusses the role of collateral and haircut policy in central bank lending, as well as the distinguishing features of the central bank’s policy relative to private sector practices. It presents a model that explicitly incorporates the unique role of central banks in the payments system and argues that central banks must consider how their haircut policies affect the relative price and liquidity of assets, the market’s asset allocation, and the likelihood of participants to default. Furthermore, under extraordinary circumstances, there is a rationale for the central bank to temporarily reduce haircuts or broaden the list of eligible collateral to mitigate the shortage of liquidity in the market. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Financial stability, Payment clearing and settlement systems
November 8, 2011 Global Liquidity Remarks Mark Carney Canada-United Kingdom Chamber of Commerce London, United Kingdom Governor Mark Carney discusses how global liquidity cycles affect financial stability and economic growth, and what policy can do about it. Content Type(s): Press, Speeches and appearances, Remarks
November 2, 2011 Opening Statement before the Senate Standing Committee on National Finance Opening statement Mark Carney Senate Standing Committee on National Finance Ottawa, Ontario Good evening. Tiff and I are pleased to be here with you today to discuss retail price differentials between Canada and the United States. The mandate of the Bank of Canada is to enhance the well-being of Canadians by contributing to sustained economic growth. The single, most direct contribution that monetary policy can make to […] Content Type(s): Press, Speeches and appearances, Opening statements
Measuring Systemic Importance of Financial Institutions: An Extreme Value Theory Approach Staff Working Paper 2011-19 Toni Gravelle, Fuchun Li In this paper, we define a financial institution’s contribution to financial systemic risk as the increase in financial systemic risk conditional on the crash of the financial institution. The higher the contribution is, the more systemically important is the institution for the system. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): C, C1, C14, C5, C58, G, G2, G21, G3, G32
September 25, 2011 Some Current Issues in Financial Reform Remarks Mark Carney Institute of International Finance Washington, D.C. Governor Mark Carney discusses current financial system reform initiatives in a speech to the Institute of International Finance. Content Type(s): Press, Speeches and appearances, Remarks
International House Price Cycles, Monetary Policy and Risk Premiums Staff Working Paper 2014-54 Gregory Bauer Using a panel logit framework, the paper provides an estimate of the likelihood of a house price correction in 18 OECD countries. The analysis shows that a simple measure of the degree of house price overvaluation contains a lot of information about subsequent price reversals. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Housing JEL Code(s): C, C2, E, E4, E43, R, R2, R21