Liquidity risks at Canadian life insurance companies Staff Analytical Note 2024-7 Patrick Aldridge, Stephane Gignac, Rishi Vala, Adrian Walton We examine how life insurers manage liquidity risks created by their business model. We find that Canadian life insurers did not face significant liquidity draws and continued their usual investment behaviour during the COVID-19 crisis and as interest rates increased in 2022. Content Type(s): Staff research, Staff analytical notes Topic(s): Coronavirus disease (COVID-19), Financial institutions, Financial markets, Financial stability, Market structure and pricing JEL Code(s): D, D4, D47, D5, D53, G, G1, G12, G14, G2, G23
April 17, 2024 Prescribed supervisory information This supervisory policy provides an explanation of the prescribed supervisory information provisions and sets out the Bank of Canada’s expectations for payments service providers’ compliance with non-disclosure requirements related to prescribed supervisory information under subsection 64(1) of the Retail Payment Activities Act and sections 37 to 38 of the Retail Payment Activities Regulations. Content Type(s): Retail payments supervision materials, Supervisory policies Topic(s): Supervision
April 17, 2024 Record keeping This supervisory policy outlines what records payment service providers should keep and retain to comply with their record-keeping obligations under the Retail Payment Activities Act and the Retail Payment Activities Regulations. Content Type(s): Retail payments supervision materials, Supervisory policies Topic(s): Supervision
April 16, 2024 Fireside Chat with Tiff Macklem, Governor of the Bank of Canada On Tuesday, April 16, 2024, Tiff Macklem, Governor of the Bank of Canada, will speak at the Wilson Center’s Washington Forum on the Canadian Economy on the sidelines of the IMF-WB spring meetings. Content Type(s): Press, Media advisories
April 15, 2024 CARR to begin publishing data on the transition of CDOR based loans to CORRA To facilitate the monitoring of the transition away from CDOR based loans to CORRA and Term CORRA, CARR will publish a monthly report on the aggregated outstanding amount of CDOR loans that have not transitioned to other benchmarks, as well as the volume of new loans, including any transitioned loans, referencing CORRA and/or Term CORRA. Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
April 15, 2024 Collateral Infrastructure and Market Practices Advisory Group CIMPA is an industry-wide working group created under CFIF to promote the well-functioning of the Canadian securities and financing markets.
Unintended Consequences of the Home Affordable Refinance Program Staff Working Paper 2024-11 Phoebe Tian, Chen Zheng We investigate the unintended consequences of the Home Affordable Refinance Program (HARP). Originally designed to help borrowers refinance after the 2008–09 global financial crisis, HARP inadvertently strengthened the market power of incumbent lenders by creating a cost advantage for them. Despite a 2013 policy rectifying this cost advantage, we still find significant welfare losses for borrowers. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): G, G2, G21, G5, G51, L, L5, L51