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Ownership Concentration and Competition in Banking Markets
Lai, Alexandra; Solomon, Raphael - Bank of Canada - 2006
Many countries prohibit large shareholdings in their domestic banks. The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986). For the...
Persistent link: https://www.econbiz.de/10005162422
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Measuring Systemic Importance of Financial Institutions: An Extreme Value Theory Approach
Gravelle, Toni; Li, Fuchun - Bank of Canada - 2011
In this paper, we define a financial institution’s contribution to financial systemic risk as the increase in financial systemic risk conditional on the crash of the financial institution. The higher the contribution is, the more systemically important is the institution for the system. Based...
Persistent link: https://www.econbiz.de/10009326653
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Funding Advantage and Market Discipline in the Canadian Banking Sector
Beyhaghi, Mehdi; D'Souza, Chris; Roberts, Gordon S. - Bank of Canada - 2013
We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks’ funding advantage in Canada, and on the extent to which market discipline exists across different securities issued by the Canadian banks. The banking sector in Canada provides a...
Persistent link: https://www.econbiz.de/10010723573
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Trade Credit and Credit Rationing in Canadian Firms
Cunningham, Rose - Bank of Canada - 2004
Burkart and Ellingsen's (2004) model of trade credit and bank credit rationing predicts that trade credit will be used … by medium-wealth and low-wealth firms to help ease bank credit rationing. The author tests these and other predictions of …-wealth firms substitute trade credit for bank credit consistent with using it to alleviate bank credit rationing. The low …
Persistent link: https://www.econbiz.de/10005162524
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The Impact of Liquidity on Bank Profitability
Bordeleau, Étienne; Graham, Christopher - Bank of Canada - 2010
The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are devising new liquidity standards with the aim of making the financial system more stable and resilient. In this paper, the authors analyse the impact of liquid asset holdings on bank...
Persistent link: https://www.econbiz.de/10008765829
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The Ex-Ante Versus Ex-Post Effect of Public Guarantees
Damar, H. Evren; Gropp, Reint; Mordel, Adi - Bank of Canada - 2012
In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks’ credit fundamentals. We use this natural experiment to evaluate the...
Persistent link: https://www.econbiz.de/10010559813
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Survey of Price-Setting Behaviour of Canadian Companies
Amirault, David; Kwan, Carolyn; Wilkinson, Gordon - Bank of Canada - 2006
In many mainstream macroeconomic models, sticky prices play an important role in explaining the effects of monetary policy on the economy. Various theories have been set forth to explain why prices are sticky. This study takes a firm-level survey approach, in a spirit similar to Blinder et al....
Persistent link: https://www.econbiz.de/10005673303
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The Economic Theory of Retail Pricing: A Survey
Secrieru, Oana - Bank of Canada - 2004
The types of contracts that arise in a typical vertical manufacturer–retailer relationship are more sophisticated than usually assumed in standard macroeconomic models. In addition to setting per-unit prices, manufacturers and retailers revert to non-linear pricing and non-price instruments....
Persistent link: https://www.econbiz.de/10005162396
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Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms
Munnik, Daniel de; Xu, Kuan - Bank of Canada - 2007
How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable. The authors use the Bank of...
Persistent link: https://www.econbiz.de/10005162398
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A Model of the EFA Liabilities
Rivadeneyra, Francisco; Dissou, Oumar - Bank of Canada - 2011
The authors describe the liabilities model of the Exchange Fund Account (EFA). The EFA is managed using an asset-liability matching framework that requires currency and duration matching of both sides of the balance sheet. The model chooses the mix of liabilities across instruments and tenors...
Persistent link: https://www.econbiz.de/10009395393