Analyzing supply and demand for business loans using microdata from the Senior Loan Officer Survey Staff Analytical Note 2021-13 Dylan Hogg Both supply and demand factors help determine the level of business lending in the economy, but most data show only their combined effect on prices and quantities. Using the Bank of Canada’s Senior Loan Officer Survey microdata on financial institutions’ lending conditions and demand, we separate supply from demand effects. Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Financial stability JEL Code(s): D, D2, D22, G, G0, G01, G2
June 30, 2021 Research Update - June 2021 This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. Content Type(s): Staff research, Research newsletters
June 29, 2021 Bank of Canada publishes transaction-level data for its discontinued asset purchase programs As previously announced on March 23, the Bank is publishing transaction-level data for its discontinued asset purchase programs that were introduced to support key financial markets during the COVID-19 pandemic. Content Type(s): Press, Market notices Source(s): Bankers’ Acceptance Purchase Facility, Commercial Paper Purchase Program, Corporate Bond Purchase Program, Provincial Bond Purchase Program, Provincial Money Market Purchase Program
June 28, 2021 Operational details for upcoming secondary market purchases of Government of Canada securities (July 5-16) As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
An Optimal Macroprudential Policy Mix for Segmented Credit Markets Staff Working Paper 2021-31 Jelena Zivanovic How can macroprudential policy and monetary policy stabilize segmented credit markets? Is there a trade-off between financial stability and price stability? I use a theoretical model to evaluate the performance of alternative policies and find the optimal mix of macroprudential and monetary policy in response to aggregate shocks. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Credit risk management, Financial stability, Financial system regulation and policies JEL Code(s): E, E3, E30, E4, E44, E5, E50
ToTEM III: The Bank of Canada’s Main DSGE Model for Projection and Policy Analysis Technical Report No. 119 Paul Corrigan, Hélène Desgagnés, José Dorich, Vadym Lepetyuk, Wataru Miyamoto, Yang Zhang ToTEM III is the most recent generation of the Bank of Canada’s main dynamic stochastic general equilibrium model for projection and policy analysis. The model helps Bank staff tell clear and coherent stories about the Canadian economy’s current state and future evolution. Content Type(s): Staff research, Technical reports Topic(s): Business fluctuations and cycles, Economic models, Housing, Interest rates, Monetary policy JEL Code(s): E, E1, E17, E2, E20, E3, E30, E4, E40, E5, E50, E6, E62, E65, F, F4, F40, F41, G, G5, G51
June 28, 2021 CARR Meeting (June 28, 2021) Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group
June 25, 2021 CFEC recommendations on dating conventions for foreign exchange contracts in light of new national holiday In light of the newly-introduced National Day for Truth and Reconciliation holiday, and the closure of payment clearing and settlement systems, the Canadian Foreign Exchange Committee (CFEC) recommends that any existing forward foreign exchange contracts scheduled to settle on September 30, 2021 should be renegotiated to settle on September 29, 2021 instead. Content Type(s): Press, Market notices Source(s): Canadian Foreign Exchange Committee
June 25, 2021 Bank of Canada to be closed in observance of National Day for Truth and Reconciliation on September 30, 2021 In observance of National Day for Truth and Reconciliation—a new national holiday to commemorate the tragic history and lasting effects of Canada’s residential school system, and to honour Indigenous survivors and their families and communities—the Bank of Canada, as a federally regulated workplace, will be closed on September 30, 2021. Content Type(s): Press, Market notices