Assessing Global Potential Output Growth: April 2018 Staff analytical note 2018-9 Richard Beard, Anne-Katherine Cormier, Michael Francis, Katerina Gribbin, Justin-Damien Guénette, Christopher Hajzler, James Ketcheson, Kun Mo, Louis Poirier, Peter Selcuk, Kristina Hess This note presents our estimates of potential output growth for the global economy through 2020. Overall, we expect global potential output growth to remain broadly stable over the projection horizon, averaging 3.3 per cent, although there is considerable uncertainty surrounding these estimates. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E1, E10, E2, E20, O, O4 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply, Digitalization and productivity
The International Exposure of the Canadian Banking System Staff working paper 2025-1 Christian Friedrich, Hanno Friedrich, Nick Lawrence, Javier Cortes Orihuela, Phoebe Tian In 2023, the share of Canadian banks’ foreign assets and liabilities amounted to around 50%. While Canadian banks engage domestically mostly with households and non-financial corporations, their most common counterparties abroad are non-bank financial institutions. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F2, F21, F23, F3, F31, F32, G, G2, G21, G23, G3 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Structural challenges, International trade, finance and competitiveness
Managing Risk Taking with Interest Rate Policy and Macroprudential Regulations Staff working paper 2016-47 Simona Cociuba, Malik Shukayev, Alexander Ueberfeldt We develop a model in which a financial intermediary’s investment in risky assets—risk taking—is excessive due to limited liability and deposit insurance and characterize the policy tools that implement efficient risk taking. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, E5, E52, G, G1, G11, G18 Research Theme(s): Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation
August 22, 2004 Canada's Capital Markets: How Do They Measure Up? Bank of Canada Review - Summer 2004 Sheryl Kennedy In a recent speech, Deputy Governor Sheryl Kennedy discusses how the efficiency of Canada's capital markets compares in a global context. Taking into account the three inter-related aspects of an efficient market (allocational, operational, and informational efficiency), Kennedy reviews the recent performance of Canadian capital markets under such headings as size, completeness, and access to capital and the instruments needed to hedge, or distribute, risk (allocational efficiency). To assess operational efficiency, she considers Canadian markets' liquidity and whether their transactional costs are competitive. Finally, she reviews transparency and market integrity (and how integrity is maintained) to determine markets' informational efficiency. She also offers several suggestions as to how Canadian markets can continue to be improve and maintain their competitiveness. Content Type(s): Publications, Bank of Canada Review articles
Regulatory Requirements of Banks and Arbitrage in the Post-Crisis Federal Funds Market Staff working paper 2022-48 Rodney J. Garratt, Sofia Priazhkina This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks, and arbitrage opportunities created by limited access to the facility granting interest on excess reserves. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E42, E5, E58, G, G2, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial system regulation and oversight, Models and tools, Economic models, Monetary policy, Monetary policy tools and implementation
Implementing Market-Based Indicators to Monitor Vulnerabilities of Financial Institutions Staff analytical note 2016-5 Cameron MacDonald, Maarten van Oordt, Robin Scott This note introduces several market-based indicators and examines how they can further inform the Bank of Canada’s vulnerability assessment of Canadian financial institutions. Market-based indicators of leverage suggest that the solvency risk for major Canadian banks has increased since the beginning of the oil-price correction in the second half of 2014. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G1, G10, G2, G21 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk
November 6, 2024 Canada’s mortgage market—A question of balance Remarks Carolyn Rogers Economic Club of Canada Toronto, Ontario Senior Deputy Governor Carolyn Rogers looks at the mortgage market in Canada—past, present and future. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation targeting framework
Identification and Estimation of Risk Aversion in First-Price Auctions with Unobserved Auction Heterogeneity Staff working paper 2016-23 Serafin Grundl, Yu Zhu This paper shows point identification in first-price auction models with risk aversion and unobserved auction heterogeneity by exploiting multiple bids from each auction and variation in the number of bidders. The required exclusion restriction is shown to be consistent with a large class of entry models. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C14, C5, C57, D, D4, D44, L, L0, L00 Research Theme(s): Financial markets and funds management, Market structure, Models and tools, Econometric, statistical and computational methods
December 15, 2020 Trading for a sustainable recovery Remarks (delivered virtually) Tiff Macklem Greater Vancouver Board of Trade Vancouver, British Columbia Governor Tiff Macklem talks about how important trade is for the economic recovery. He discusses what policymakers and business leaders can do to encourage growth in trade. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economy/Economic growth, Inflation targeting framework
Bank Runs, Portfolio Choice, and Liquidity Provision Staff working paper 2019-37 Toni Ahnert, Mahmoud Elamin After the financial crisis of 2007–09, many jurisdictions introduced new banking regulations to make banks more resilient and less likely to fail. These regulations included tighter limits for the quality and quantity of bank capital and introduced minimum standards for liquidity. But what was the impact of these changes? Content Type(s): Staff research, Staff working papers JEL Code(s): G, G0, G01, G2, G21 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk