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This paper documents a link between the real and financial sides of the economy. We find that retail equity mutual fund flows in Canada are negatively related to current and past changes in a component of the prime and 5-year mortgage rates that is uncorrelated with government rates. The effect...
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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. In particular, this report highlights the role...
Persistent link: https://www.econbiz.de/10005808261
The authors examine the effect of a trade-off between shared credit risk and liquidity efficiency, among participants … credit limits (BCLs) to a participant at risk of imminent closure. The authors' analysis considers a network of three banks …
Persistent link: https://www.econbiz.de/10005808265
Payment services offered by non-banks have flourished in recent years. The author provides an overview of the different kinds of non-bank retail payments schemes currently available in Canada, illustrating each by focusing on a specific example. Current players in the Canadian marketplace...
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This paper uses discrete-choice models to quantify the role of consumer socioeconomic characteristics, payment instrument attributes, and transaction features on the probability of using cash, debit card, or credit card at the point-of-sale. We use the Bank of Canada 2009 Method of Payment...
Persistent link: https://www.econbiz.de/10009352265
that a lending facility provides a bundle of two types of insurance: insurance against liquidity risk as well as insurance … against downside risk of the collateral. Setting a haircut therefore involves balancing the trade-off between relaxing the … liquidity constraints of agents on one hand, and increasing potential inflation risk and distorting the portfolio choices of …
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