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...

The paper employs a unique identification strategy that links survey data on household consumption expenditure to bank-level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures. Specifically, we show that households whose banks were...

We study how an increase to the deposit insurance limit affects households' portfolio allocation by exogenously increasing the share of safe financial assets. Using unique data that identify insured versus uninsured deposits, along with detailed information on Canadian households' portfolio...