Financial services

• November 21, 2003

  Developments, Issues, and Initiatives in Retail Payments

  Bank of Canada Review - Autumn 2003 Sean O'Connor

  Innovations in basic information technologies, in payment applications, and in the availability of global markets, as well as substantial changes in financial sector policy, have fundamentally changed how the retail payments system in Canada operates. Principally, the volume and types of electronic payments have grown, and there is increased participation by diverse groups of financial and non-financial institutions as providers of retail payment services. The resulting policy problem for payment systems is how best to benefit from efficiency gains while managing payment risks. O'Connor examines the effect of the technological and legislative changes and the initiatives developed by the public and private sectors in such areas as the market arrangements for services; customer risks and costs for settling large-value retail payments; the security of payment information and the efficiency with which it is transmitted; and the effects of differing regulatory regimes on competition among providers of retail payment services.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial services, Payment clearing and settlement systems
• August 23, 2003

  Financial Developments in Canada: Past Trends and Future Challenges

  Bank of Canada Review - Summer 2003 Charles Freedman, Walter Engert

  Freedman and Engert focus on the changing pattern of lending and borrowing in Canada in the past thirty to forty years, including the types of financial instruments used and the relative roles of financial institutions and financial markets. They examine how borrowing mechanisms have changed over time and consider the challenges facing the Canadian financial sector, including whether our financial markets are in danger of disappearing because of the size and pre-eminence of U.S. financial markets. Some of the trends examined here include syndicated lending, securitization, and credit derivatives, a form of financial engineering that has become increasingly important in the last few years. They also study bond and equity markets to determine whether Canadian capital markets have been hollowed out or abandoned by Canadian firms and conclude that the data do not provide much support for that view.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial institutions, Financial markets, Financial services, Recent economic and financial developments

• Financial Structure and Economic Growth: A Non-Technical Survey

  Staff Working Paper 2002-24 Veronika Dolar, Césaire Meh

  There is a large body of literature that studies the relationship between financial structure (that is, the degree to which the financial system is either market- or intermediary-based) and long-run economic growth.

  Content Type(s): Staff research, Staff working papers Topic(s): Development economics, Economic models, Financial institutions, Financial markets, Financial services JEL Code(s): F, F3, F36, G, G0, G00, G1, G14, G2, G21, K, K2, K22, O, O1, O16

• The Financial Services Sector: An Update on Recent Developments

  Technical Report No. 91 Charles Freedman, Clyde Goodlet

  The Canadian financial industry continues to experience significant changes. This report provides an update on recent developments and re-examines a number of issues facing financial service providers that were identified in Technical Report No. 82.

  Content Type(s): Staff research, Technical reports Topic(s): Financial institutions, Financial services JEL Code(s): G, G2

• Modelling Financial Instability: A Survey of the Literature

  Staff Working Paper 2002-12 Alexandra Lai

  The magnitude and frequency of recent financial crises underscore the importance of understanding financial instability for the purpose of crisis prevention and crisis management.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial markets, Financial services JEL Code(s): G, G2, G20, G21, G28

• The Financial Services Sector: Past Changes and Future Prospects

  Technical Report No. 82 Charles Freedman, Clyde Goodlet

  The financial services industry has been undergoing significant change in recent years. This paper analyzes some key developments affecting the industry and examines some important issues facing the industry and its regulators.

  Content Type(s): Staff research, Technical reports Topic(s): Financial services JEL Code(s): G, G2