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Financial System Review Summary - 2019

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 九州体育平台: Stephen S. Poloz, Carolyn A. Wilkins, Timothy Lane, Lawrence Schembri, Lynn Patterson and Paul Beaudry.

Stephen S. Poloz
Stephen S. Poloz
Carolyn A. Wilkins
Carolyn A. Wilkins
Timothy Lane
Timothy Lane
Lawrence L. Schembri
Lawrence L. Schembri
Lynn Patterson
Lynn Patterson
Paul Beaudry
Paul Beaudry
May 16, 2019

Assessing the Resilience of the Canadian Banking System

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.
Charles Gaa
Charles Gaa
Xuezhi Liu
Xuezhi Liu
Cameron MacDonald
Cameron MacDonald
Xiangjin Shen
Xiangjin Shen
May 16, 2019

Financial System Survey Highlights

This article presents the key results from the spring 2019 九州体育平台 Financial System Survey, conducted March 11 and March 29, 2019. This survey included a special question on cyber risk.
May 7, 2019

Could Canadian Bond Funds Add Stress to the Financial System?

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.
Rohan Arora
Rohan Arora
Guillaume Bédard-Pagé
Guillaume Bédard-Pagé
Guillaume Ouellet Leblanc
Guillaume Ouellet Leblanc
Ryan Shotlander
Ryan Shotlander
April 15, 2019

Non-Bank Financial Intermediation in Canada: An Update

Non-bank financial intermediation provides a valuable alternative to traditional banking. We provide an update on the Bank’s monitoring of this area, including insights obtained from new data sources.
Guillaume Bédard-Pagé
Guillaume Bédard-Pagé
March 26, 2019

A Perspective on Crypto “Money”

From a central banking perspective, the monetary landscape 10 to 15 years from now could look radically different than it does today. This paper explores some important research and policy questions for a central bank regarding cryptoassets.
James Chapman
James Chapman
Carolyn A. Wilkins
Carolyn A. Wilkins
February 8, 2019

Price Caps in Canadian Bond Borrowing Markets

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.
Léanne Berger-Soucy
Léanne Berger-Soucy
Jean-Sébastien Fontaine
Jean-Sébastien Fontaine
Adrian Walton
Adrian Walton
January 14, 2019

Governor Poloz Speaks on Financial Vulnerabilities and Risks to the Economy

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.
Stephen S. Poloz
Stephen S. Poloz
December 6, 2018

The Impact of Recent Policy Changes on the Canadian Mortgage Market

Recent policy changes are having a clear impact on the mortgage market. The number of new, highly indebted borrowers has fallen, and overall mortgage activity has slowed significantly.
Olga Bilyk
Olga Bilyk
Maria teNyenhuis
Maria teNyenhuis
November 14, 2018

Financial System Survey Highlights

This article presents the key results from the autumn 2018 九州体育平台 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.
November 14, 2018

Financial System Resilience and House Price Corrections

We use models to better understand and assess how risks could affect the financial system. In our hypothetical scenario, a house price correction and elevated financial stress weigh on the economy. An increased number of households and businesses have difficulty repaying loans. Nonetheless, the large banks remain resilient.
Thibaut Duprey
Thibaut Duprey
Xuezhi Liu
Xuezhi Liu
Cameron MacDonald
Cameron MacDonald
Maarten van Oordt
Maarten van Oordt
Sofia Priazhkina
Sofia Priazhkina
Xiangjin Shen
Xiangjin Shen
Joshua Slive
Joshua Slive
Virginie Traclet
Virginie Traclet
November 14, 2018

Keeping the Financial System Healthy

We are all better off if the financial system can weather a storm or two. And every one of us plays a role in keeping it that way.
Joshua Slive
Joshua Slive
Donald Coletti
Donald Coletti
October 16, 2018

Financial System Review: Assessment of Vulnerabilities and Risks - June 2018

This issue of the Financial System Review reflects the Bank’s judgment that high household indebtedness and housing market imbalances remain the most important vulnerabilities. While these vulnerabilities remain elevated, policy measures continue to improve the resilience of the financial system. A third vulnerability highlighted in the FSR concerns cyber threats to an interconnected financial system.
June 7, 2018

Financial System Research Centre

The FSRC promotes financial system research in Canada to inform policy and improve the economic and financial well-being of Canadians.
November 14, 2018

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