Financial System Hub

• June 27, 2019

  Bank of Canada announces partnership to improve resilience in financial sector

  Media Relations Ottawa, Ontario

  The Bank’s cyber security strategy charts our course to reduce risk and promote resilience for the years 2019 to 2021.

  Content Type(s): Press, Press releases Source(s): Canadian Financial Sector Resiliency Group
• May 16, 2019

  Financial System Review Summary—2019

  

  Stephen S. Poloz, Carolyn A. Wilkins, Timothy Lane, Lawrence L. Schembri, Lynn Patterson, Paul Beaudry

  In our Financial System Review, we identify the main vulnerabilities and risks to financial stability in Canada and explain how they have evolved over the past year. This issue reflects the Bank’s judgment that the vulnerabilities associated with high household debt and imbalances in the housing market have declined modestly but remain significant. The Financial System Review is a product of the Governing Council of the Bank of Canada: Stephen S. Poloz, Carolyn A. Wilkins, Timothy Lane, Lawrence Schembri, Lynn Patterson and Paul Beaudry.

  Content Type(s): Publications, Financial Stability Report

• Assessing the Resilience of the Canadian Banking System

  Staff Analytical Note 2019-16 Charles Gaa, Xuezhi Liu, Cameron MacDonald, Xiangjin Shen

  The stability of the Canadian financial system, as well as its ability to support the Canadian economy, depends on the ability of financial institutions to absorb and manage major shocks. This is especially true for large banks, which perform services essential to the Canadian economy.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial stability JEL Code(s): C, C6, C63, E, E2, E27, E3, E37, E4, E44, G, G0, G01, G2, G21
• May 7, 2019

  Financial System Survey Highlights—May 2019

  This article presents the key results from the spring 2019 Bank of Canada Financial System Survey, conducted March 11 and March 29, 2019. This survey included a special question on cyber risk.

  Content Type(s): Publications, Financial System Survey

• Could Canadian Bond Funds Add Stress to the Financial System?

  Staff Analytical Note 2019-9 Rohan Arora, Guillaume Bédard-Pagé, Guillaume Ouellet Leblanc, Ryan Shotlander

  We create a hypothetical scenario to study the role bond funds play in intensifying shocks to the financial system. Using data from 2018 and 2007, we find that bond funds play a larger role now than they did in the past.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets, Financial stability JEL Code(s): G, G1, G2, G20, G23

• Non-Bank Financial Intermediation in Canada: An Update

  Staff Discussion Paper 2019-2 Guillaume Bédard-Pagé

  Non-bank financing provides an important funding source for the economy and is a valuable alternative to traditional banking. It helps enhance the efficiency and resiliency of the financial system while giving customers more choices for their financial services. Unlike banking, it is not prudentially regulated.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial markets, Financial stability JEL Code(s): G, G0, G01, G2, G20, G23

• Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers

  Staff Discussion Paper 2019-1 James Chapman, Carolyn A. Wilkins

  The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Bank notes, Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42, E5, E51, E58, H, H4, P, P4, P43

• Price Caps in Canadian Bond Borrowing Markets

  Staff Analytical Note 2019-2 Léanne Berger-Soucy, Jean-Sébastien Fontaine, Adrian Walton

  Price controls, or caps, can lead to shortages, as 1970’s gasoline price controls illustrate. One million trades show that the market for borrowing bonds in Canada has an implicit price cap: traders are willing to pay no more than the overnight interest rate to borrow a bond. This suggests the probability of a shortage increases when interest rates are very low.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets JEL Code(s): G, G1, G10, G12
• December 6, 2018

  Governor Poloz speaks on financial vulnerabilities and risks to the economy

  Speech summary Stephen S. Poloz CFA - Toronto Toronto, Ontario

  In his final speech of 2018, Governor Stephen S. Poloz discusses the vulnerabilities and risks in Canada’s financial system as well as Canadian and global economic developments. He explains how all this was taken into account in the December interest rate decision.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Financial stability, Housing, Monetary policy, Recent economic and financial developments
• November 14, 2018

  Financial System Survey Highlights—November 2018

  This article presents the key results from the autumn 2018 Bank of Canada Financial System Survey, conducted between September 24 and October 12, 2018. The survey collects expert opinions from financial system experts on the risks to, and resilience of, the Canadian financial system.

  Content Type(s): Publications, Financial System Survey