Financial System Hub
Promoting a stable and efficient financial system
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The Cyber Incident Landscape
The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk.
Nikil Chande
Dennis Yanchus
Financial Stability in an Uncertain World
Senior Deputy Governor Carolyn A. Wilkins talks about the recent strengthening of Canada’s financial system.
Carolyn A. Wilkins
Climate Change Is a Big Issue for Central Banks
Climate change is transforming the economy and financial system
Erik Ens
Adrian Guerin
Financial System Survey Highlights
This article presents the key results from the autumn 2019 Bank of Canada Financial System Survey, conducted September 24 and October 11, 2019. This survey included special questions on climate change risk.
November 18, 2019
Home Equity Extraction and Household Spending in Canada
We use rich microdata to measure home equity extraction in Canada and track its evolution over time. We find home equity extraction has been rising in recent years and has likely contributed materially to dynamics in household spending.
Anson T. Y. Ho
Mikael Khan
Monica Mow
Brian Peterson
A Resolution Regime for Financial Market Infrastructures
Canada’s most important payment clearing and settlement systems now have a resolution regime. As resolution authority, the Bank of Canada has new powers to protect the stability of the Canadian financial system in the unlikely event an FMI fails.
July 11, 2019
Launch of the Canadian Financial Sector Resiliency Group
This new public-private partnership led by the Bank of Canada focuses on the operational resilience of Canada’s critical financial infrastructure. The group will coordinate responses to major operational incidents, including cyber attacks, and plan initiatives to promote resilience.
July 11, 2019
IMF Financial System Stability Assessment for Canada
The International Monetary Fund’s comprehensive analysis of the Canadian financial system increases awareness and encourages discussion and debate. The IMF consulted with the Bank of Canada and other Canadian authorities, but the report is an independent assessment and does not represent the views of the Bank.
July 11, 2019
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 Bank of Canada: Stephen S. Poloz, Carolyn A. Wilkins, Timothy Lane, Lawrence Schembri, Lynn Patterson and Paul Beaudry.
Stephen S. Poloz
Carolyn A. Wilkins
Timothy Lane
Lawrence L. Schembri
Lynn Patterson
Paul Beaudry
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
Xuezhi Liu
Cameron MacDonald
Xiangjin Shen
Financial System Survey Highlights
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.
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
Guillaume Bédard-Pagé
Guillaume Ouellet Leblanc
Ryan Shotlander
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
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
Carolyn A. Wilkins
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
Jean-Sébastien Fontaine
Adrian Walton
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
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
Maria teNyenhuis
Financial System Survey Highlights
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.
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
Xuezhi Liu
Cameron MacDonald
Maarten van Oordt
Sofia Priazhkina
Xiangjin Shen
Joshua Slive
Virginie Traclet
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
Donald Coletti
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