December 10, 2013 Margining for Non-Centrally Cleared Over-the-Counter Derivatives Financial System Review - December 2013 Nikil Chande, Stéphane Lavoie, Thomas Thorn Content Type(s): Publications, Financial System Review articles
Predicting Payment Migration in Canada Staff working paper 2020-37 Anneke Kosse, Zhentong Lu, Gabriel Xerri Developments are underway to replace Canada’s two core payment systems with three new systems. We use a discrete choice model to predict migration patterns of end-users and financial institutions for future systems and discuss their policy implications. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, E, E4, E42, G, G1, G2, G28 Research Theme(s): Money and payments, Payment and financial market infrastructures, Retail payments
June 12, 2014 Making Banks Safer: Implementing Basel III Financial System Review - June 2014 Éric Chouinard, Graydon Paulin Éric Chouinard and Graydon Paulin review the progress to date in implementing Basel III, the new framework of global regulatory standards for the banking sector developed by the Basel Committee on Banking Supervision. The report highlights the expected net benefits of implementing Basel III, as well as the challenges in ensuring international consistency in measuring the risk-weighted capital of banks. It includes a discussion on how implementing Basel III has affected the banking system in Canada and other important jurisdictions, and demonstrates the need for ongoing assessment of the effects on the financial system and the macroeconomy. Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G2, G28
Credit Card Minimum Payment Restrictions Staff working paper 2024-26 Jason Allen, Michael Boutros, Benedict Guttman-Kenney We study a government policy that restricts repayment choices with the aim of reducing credit card debt and estimate its effects by applying a difference-in-differences methodology to comprehensive credit-reporting data about Canadian consumers. We find the policy has trade-offs: reducing revolving debt comes at a cost of reducing credit access, and potentially increasing delinquency. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D18, E, E2, E21, G, G2, G28, G5, G51 Research Theme(s): Financial system, Financial system regulation and oversight, Household and business credit
Beating the “pros” with a semi-structural model of their own inflation forecasts Staff working paper 2026-11 Sergio A. Lago Alves, Waldyr Dutra Areosa, Carlos Viana de Carvalho How can Surveys of Professional Forecasters (SPF) be used to improve inflation forecasts? By using US historical quarterly data on SPF forecasts, we provide better understanding of how we can use forecast disagreement to improve our own forecasts. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C11, C5, C53, E, E3, E31, E37 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting Staff working paper 2018-61 Gino Cateau, Malik Shukayev This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E31, E5, E52 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission
A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update Staff discussion paper 2019-9 Helen Lao, Ceciline Steyn We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E3, E31, E5, E52 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
The Propagation of Regional Shocks in Housing Markets: Evidence from Oil Price Shocks in Canada Staff working paper 2018-56 Lutz Kilian, Xiaoqing Zhou How do global oil price shocks spread through Canada’s economy? With Canada’s regionally diverse economy in mind, we explore the implications of oil price shocks for Canadian housing markets and regional economies. We show that the belief that oil price shocks only matter in oil-rich regions is false. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F4, F43, Q, Q3, Q33, Q4, Q43, R, R1, R12, R3, R31 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
Understanding DeFi Through the Lens of a Production-Network Model Staff working paper 2023-42 Jonathan Chiu, Thorsten Koeppl, Hanna Yu, Shengxing Zhang We develop a production-network model to capture how decentralized finance (DeFi) has evolved across different sectors of financial services. The model allows us to measure the value added by different DeFi sectors and to study how the connections across the sectors influence token prices. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G2 Research Theme(s): Models and tools, Economic models, Money and payments, Digital assets and fintech
June 21, 2006 Bank of Canada Oversight Activities during 2005 under the Payment Clearing and Settlement Act Financial System Review - June 2006 Clyde Goodlet Content Type(s): Publications, Financial System Review articles