January 14, 2022 Using Scenario Analysis to Assess Climate Transition Risk Final Report of the BoC-OSFI Climate Scenario Analysis Pilot
Assessing Climate-Related Financial Risk: Guide to Implementation of Methods Technical Report No. 120 Hossein Hosseini, Craig Johnston, Craig Logan, Miguel Molico, Xiangjin Shen, Marie-Christine Tremblay A pilot project on climate transition scenarios by the Bank of Canada and the Office of the Superintendent of Financial Institutions assessed climate-related credit and market risks. This report describes the project’s methodologies and provides guidance on implementing them. Content Type(s): Staff research, Technical reports Topic(s): Climate change, Credit and credit aggregates, Econometric and statistical methods, Financial stability JEL Code(s): C, C5, C53, C8, C83, G, G1, G3, G32
January 14, 2022 Climate transition scenario data In November 2020, the Bank of Canada launched a pilot project with the Office of the Superintendent of Financial Institutions aimed at better understanding risks to the economy and the financial system related to climate change. Part of this work included developing a set of Canada-relevant climate transition scenarios that explore pathways consistent with achieving certain climate targets.
Transition Scenarios for Analyzing Climate-Related Financial Risk Staff Discussion Paper 2022-1 Y.-H. Henry Chen, Erik Ens, Olivier Gervais, Hossein Hosseini, Craig Johnston, Serdar Kabaca, Miguel Molico, Sergey Paltsev, Alex Proulx, Argyn Toktamyssov Climate transition scenarios clarify climate-related risks to our economy and financial system. This paper summarizes key results of Canada-relevant scenarios developed in a pilot project on climate risk by the Bank of Canada and the Office of the Superintendent of Financial Institutions. Content Type(s): Staff research, Staff discussion papers Topic(s): Climate change, Economic models, Financial stability, International topics JEL Code(s): C, C6, C68, D, D5, D58, E, E5, E50, O, O4, O44, P, P1, P18, Q, Q5, Q54
January 13, 2022 Notice of memorandum of understanding between the Autorité des marchés financiers, the British Columbia Securities Commission, the Ontario Securities Commission and the Bank of Canada In support of its mandate as the resolution authority for Canadian financial market infrastructures (FMIs), the Bank of Canada has entered into a memorandum of understanding (MOU) with the Autorité des marchés financiers, the British Columbia Securities Commission and the Ontario Securities Commission. Content Type(s): Press, Market notices
Housing demand in Canada: A novel approach to classifying mortgaged homebuyers Staff Analytical Note 2022-1 Mikael Khan, Yang Xu We introduce a novel approach to categorize mortgaged homebuyers into first-time homebuyers, repeat homebuyers and investors. We show how these groups contribute to activity in Canadian housing markets, and we analyze the differences in their demographic and financial characteristics. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial stability, Housing JEL Code(s): R, R2, R21, R3, R31
Firm Inattention and the Efficacy of Monetary Policy: A Text-Based Approach Staff Working Paper 2022-3 Wenting Song, Samuel Stern How much attention do firms pay to macroeconomic news? Through a novel text-based measure, two facts emerge. First, attention is polarized. Most firms either never or always pay attention to economic conditions. Second, it is countercyclical. During recessions, more firms pay attention, and firms pay greater attention to macroeconomic news. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Inflation and prices, Monetary policy JEL Code(s): D, D8, D83, E, E4, E44, E5, E52