May 14, 2015 Inflation Dynamics in the Post-Crisis Period Bank of Canada Review - Spring 2015 Christian Friedrich, Marc-André Gosselin Inflation rates in advanced economies experienced two consecutive puzzles during the period following the global financial crisis—unexpectedly high inflation from the end of 2009 to 2011 and unexpectedly low inflation from 2012 to the middle of 2014. We investigate these developments in two ways. First, we show that accounting for inflation expectations by households explains a significant share of the inflation puzzles at the international level. Second, we find that, for Canada, elevated competition in the retail sector is also important for understanding inflation dynamics in the post-crisis period. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Inflation and prices, International topics, Regional economic developments JEL Code(s): E, E3, E31, E5, F, F4, F41
May 14, 2015 Improving the Foundation of Canada’s Payments System Bank of Canada Review - Spring 2015 Lana Embree, Paul Miller The Canadian payments environment has evolved with enhancements in technology, changes in user expectations and new regulatory standards. In response, the existing regulatory framework and core payments infrastructure are being enhanced. This article describes several revisions to the governance and regulation of the payments system as well as plans to update the core payments infrastructure. These initiatives will position the Canadian payments system to more effectively support a modern and vibrant economy by serving the payments needs of Canadians safely and efficiently as the payments industry continues to evolve. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, E42, G, G2, G28
May 14, 2015 The “Bank” at the Bank of Canada Bank of Canada Review - Spring 2015 Thérèse Couture, Christian Bélisle In this article, we describe the various types of banking services (payments, settlement and safekeeping) that the Bank of Canada provides to different types of clients (the Government of Canada, financial market infrastructures, financial institutions, foreign central banks and the Canada Deposit Insurance Corporation). We also explain the reasons the Bank provides these services and how this role supports its core mandates, in particular financial stability. Finally, we explore the factors driving the growth and evolution in the provision of these banking services. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Financial services, Foreign reserves management, Payment clearing and settlement systems JEL Code(s): E, E5, E50, G, G2, G20
July 19, 2010 Historical Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility – July 19, 2010 to December 12, 2013 The Bank of Canada, through its Standing Liquidity Facility (SLF), provides access to liquidity to those institutions that participate directly in the Large Value Transfer System (LVTS). Content Type(s): Collateral Policy Source(s): Standing Liquidity Facility
April 21, 2009 Overnight Standing Purchase and Resale Agreement (PRA) Facility The Bank makes this standing facility available to Primary Dealers on an overnight basis at the upper limit of the operating band (Bank Rate).
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
December 16, 2016 Weekly Financial Statistics - 16 December 2016 Content Type(s): Publications, Historical: Weekly Financial Statistics
December 15, 2016 The Rise of Mortgage Finance Companies in Canada: Benefits and Vulnerabilities Financial System Review - December 2016 Donald Coletti, Marc-André Gosselin, Cameron MacDonald The Rise of Mortgage Finance Companies in Canada: Benefits and Vulnerabilities, by Don Coletti, Marc-André Gosselin and Cameron MacDonald, examines the increased importance of mortgage finance companies (MFCs) in the Canadian mortgage market. The authors discuss the MFC business model, highlighting MFCs’ relationship with mortgage brokers and banks, as well as the benefits they bring to Canadian borrowers. The authors conclude with a discussion of the impact of MFCs on financial system vulnerabilities. Content Type(s): Publications, Financial System Review articles Research Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G2, G23
December 15, 2016 Risks to financial stability largely unchanged, household vulnerabilities remain key concern Media Relations Ottawa, Ontario The overall level of risk to Canada’s financial system remains largely unchanged from six months ago, the Bank of Canada said today in the Financial System Review (FSR). Content Type(s): Press, Press releases