June 25, 2015 Building Trust, Not Walls: The Case for Cross-Border Financial Integration Remarks Lawrence L. Schembri Windsor–Essex Regional Chamber of Commerce Windsor, Ontario Deputy Governor Lawrence Schembri discusses the need to address cross-border obstacles to greater financial integration. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, International financial markets, International topics
June 11, 2015 Canadian Open-End Mutual Funds: An Assessment of Potential Vulnerabilities Financial System Review - June 2015 Sandra Ramirez, Jesus Sierra, Jonathan Witmer The authors examine the liquidity and leverage characteristics of Canadian long-term, open-end mutual funds in terms of their potential systemic effects on the Canadian mutual fund sector and on the Canadian financial system more broadly. In their overall assessment of this sector, they consider the regulation, market size and ownership structure of mutual funds in Canada and provide observations about the industry globally. Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial markets JEL Code(s): G, G2, G23, G28
May 14, 2015 Fine-Tuning the Framework for the Bank’s Market Operations Remarks Lynn Patterson CFA Society Vancouver Vancouver, British Columbia Deputy Governor Lynn Patterson discusses proposed changes to the Bank’s financial market operations. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Lender of last resort, Monetary policy implementation
May 5, 2015 Liquid Markets for a Solid Economy Remarks Carolyn A. Wilkins Chambre de commerce du Montréal métropolitain Montréal, Quebec Senior Deputy Governor Wilkins discusses funding and market liquidity, and announces consultations on the Bank’s market operations and emergency lending frameworks. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Asset pricing, Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Lender of last resort
Effects of Funding Portfolios on the Credit Supply of Canadian Banks Staff Working Paper 2015-10 H. Evren Damar, Césaire Meh, Yaz Terajima This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies, Monetary policy implementation JEL Code(s): E, E5, E52, G, G2, G21
Improving Public Equity Markets? No Pain, No Gain Staff Working Paper 2014-41 Katya Kartashova This paper quantifies the effects of improving public equity markets on macroeconomic aggregates and welfare. I use an open-economy extension of Angeletos (2007), where entrepreneurs face idiosyncratic productivity risk in privately held firms. Content Type(s): Staff research, Staff working papers Topic(s): Development economics, Financial institutions, Financial markets JEL Code(s): E, E4, E44, G, G1, G11, O, O1, O11, O16
Information, Amplification and Financial Crisis Staff Working Paper 2014-30 Ali Kakhbod, Toni Ahnert We propose a parsimonious model of information choice in a global coordination game of regime change that is used to analyze debt crises, bank runs or currency attacks. A change in the publicly available information alters the uncertainty about the behavior of other investors. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability JEL Code(s): D, D8, D83, G, G0, G01
Filling in the Blanks: Network Structure and Interbank Contagion Staff Working Paper 2014-26 Kartik Anand, Ben Craig, Goetz von Peter The network pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often unobserved, and maximum entropy serves as the leading method for estimating counterparty exposures. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial institutions, Financial stability JEL Code(s): C, C6, C63, D, D8, D85, G, G2, G21, L, L1, L14
June 12, 2014 Stress Testing the Canadian Banking System: A System-Wide Approach Financial System Review - June 2014 Kartik Anand, Guillaume Bédard-Pagé, Virginie Traclet Stress testing is an important tool used by financial authorities and entities around the world to evaluate potential risks to the financial system. Kartik Anand, Guillaume Bédard-Pagé and Virginie Traclet discuss different stress-testing approaches, with emphasis on the innovative and analytically rigorous model developed by the Bank of Canada: the MacroFinancial Risk Assessment Framework (MFRAF). They also present the stress-test results obtained in the context of the 2013 Canada Financial Sector Assessment Program led by the International Monetary Fund, including the important contributions made by the use of MFRAF in the exercise. Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial stability JEL Code(s): C, C6, C63, G, G0, G01, G2, G21
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 Topic(s): Financial institutions, Financial system regulation and policies JEL Code(s): G, G2, G28