Credit and credit aggregates

• The Impact of Bankruptcy Reform on Insolvency Choice and Consumer Credit

  Staff Working Paper 2016-26 Jason Allen, Kiana Basiri

  We examine the impact of the 2009 amendments to the Canadian Bankruptcy and Insolvency Act on insolvency decisions. Rule changes steered debtors out of division I proposals and into the more cost-effective division II proposals.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Financial institutions, Financial system regulation and policies JEL Code(s): D, D1, D14, G, G2, K, K3, K35

• On the Nexus of Monetary Policy and Financial Stability: Effectiveness of Macroprudential Tools in Building Resilience and Mitigating Financial Imbalances

  Staff Discussion Paper 2016-11 H. Evren Damar, Miguel Molico

  This paper reviews the Canadian and international evidence of the effectiveness of macroprudential policy measures in building resilience and mitigating financial imbalances. The analysis concludes that these measures have broadly achieved their goal of increasing the overall resilience of the financial system to the buildup of imbalances and increasing the financial system’s ability to withstand adverse shocks.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies JEL Code(s): E, E5, E51, E58, G, G1, G18, G2, G28
• May 6, 2016

  Stress Prevention: Central Banks and Financial Stability

  Remarks Lawrence L. Schembri Joint Workshop: Bank of Canada, International Monetary Fund, Centre for International Governance Innovation, and Peterson Institute for International Economics Ottawa, Ontario

  Deputy Governor Lawrence Schembri discusses central banks and the maintenance of financial stability.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credit and credit aggregates, Financial stability, Financial system regulation and policies, Monetary policy framework, Sectoral balance sheet
• February 24, 2016

  Connecting the Dots: Elevated Household Debt and the Risk to Financial Stability

  Remarks Lawrence L. Schembri Guelph Chamber of Commerce Guelph, Ontario

  Deputy Governor Lawrence Schembri discusses household debt, the risk it poses to financial stability and the role of the Bank of Canada.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Monetary policy, Recent economic and financial developments, Sectoral balance sheet
• February 8, 2016

  Monetary Policy and Financial Stability—Looking for the Right Tools

  Remarks Timothy Lane HEC Montréal Montréal, Quebec

  Deputy Governor Tim Lane discusses the links between monetary policy and financial stability.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credit and credit aggregates, Financial stability, Financial system regulation and policies, Monetary policy framework, Sectoral balance sheet

• Debt Overhang and Deleveraging in the US Household Sector: Gauging the Impact on Consumption

  Staff Working Paper 2015-47 Bruno Albuquerque, Georgi Krustev

  Using a novel dataset for the US states, this paper examines whether household debt and the protracted debt deleveraging help explain the dismal performance of US consumption since 2007, in the aftermath of the housing bubble.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Econometric and statistical methods, International topics JEL Code(s): C, C1, C13, C2, C23, C5, C52, D, D1, D12, H, H3, H31
• December 15, 2015

  Release of the Financial System Review

  Opening statement Stephen S. Poloz Ottawa, Ontario

  Press conference following the release of the Financial System Review.

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Housing, Regional economic developments, Sectoral balance sheet
• December 15, 2015

  Indebted Households and Potential Vulnerabilities for the Canadian Financial System: A Microdata Analysis

  Financial System Review - December 2015 Gino Cateau, Tom Roberts, Jie Zhou

  Over the past decade, an increasing proportion of households in Canada have become highly indebted relative to their income. These highly indebted households now hold one-fifth of total Canadian household debt.Simulations suggest that this greater degree of household indebtedness could exacerbate the impact of shocks to income and interest rates relative to the pre-crisis period. However, an assessment of the vulnerability of the Canadian financial system should, among other factors, account for the ability of Canadian financial institutions to withstand losses from the household sector.

  Content Type(s): Publications, Financial System Review articles Topic(s): Credit and credit aggregates, Financial stability, Housing, Recent economic and financial developments JEL Code(s): D, D1, D14, E, E5, E51

• Credit Cards: Disentangling the Dual Use of Borrowing and Spending

  Staff Analytical Note 2015-3 Olga Bilyk, Brian Peterson

  Over the past 15 years, aggregate credit card balances have been increasing, except for a brief spell in the aftermath of the 2007–09 financial crisis. Determining whether the growing balances are due to increased usage of credit cards as a method of payment or whether they reflect increased short-term borrowing is challenging because aggregate balances are snapshots of charges on credit cards before households make their monthly payments.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial stability

• Credit Conditions and Consumption, House Prices and Debt: What Makes Canada Different?

  Staff Working Paper 2015-40 John Muellbauer, Pierre St-Amant, David Williams

  There is widespread agreement that, in the United States, higher house prices raise consumption via collateral or possibly wealth effects. The presence of similar channels in Canada would have important implications for monetary policy transmission.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Domestic demand and components, Economic models, Financial institutions, Financial stability, Financial system regulation and policies, Housing, Monetary policy transmission JEL Code(s): E, E0, E02, E2, E21, E4, E44, G, G2, G21, R, R2, R21, R3, R31