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-arbitrage conditions on trades in the market. For Canada we show that while the market is fairly efficient, some degree of inefficiency … persists throughout our sample. The level of inefficiency matches distinct phases of both the Bank of Canada’s operations as …
Persistent link: https://www.econbiz.de/10010575508
This paper while emphasising the importance of the concept of financial stability in wake of recent global financial crisis in particular and other (banking and financial) crises in general attempts to highlight the significance of the soundness of banking sector in emerging economies where...
Persistent link: https://www.econbiz.de/10011260876
negotiation process. The mortgage industry has many institutional features which suggest competitiveness: homogeneous contracts …
Persistent link: https://www.econbiz.de/10010575509
Persistent link: https://www.econbiz.de/10005808334
In the past decades, the banking sector has come to be known in literature as the banking industry as it was geared to increasing profits, banks were growing, and banking products developed dynamically. It was believed that competition in the banking sector makes banks more efficient and...
Persistent link: https://www.econbiz.de/10011206976
An individual bank can put the whole banking system at risk if its losses in response to shocks push losses for the system as a whole above a critical threshold. We determine the contribution of banks to this systemic risk using a generalisation of the Shapley value; a concept originating in...
Persistent link: https://www.econbiz.de/10004990657
Canada Mortgage and Housing Corporation, CMHC, which is a Crown agency, now backstops mortgage lending equivalent to more …The federal government’s role in mortgage markets is pervasive and should be scaled back, while encouraging more … competition in the mortgage insurance business, according to this study. The author notes that the mortgage insurance book of …
Persistent link: https://www.econbiz.de/10008853832
The bailouts carried out by governments for large banks and other financial entities in the recent financial turbulence are often characterized as a Too-Big-To-Fail (TBTF) policy. Proponents of such a policy argue that preventing the failure of large banks (and possibly other financial and...
Persistent link: https://www.econbiz.de/10008680603
This paper analyzes central bank policies on the monitoring of banks in distress in which liquidity provisions are conditional on performance when a bad shock occurs. A sequential game model is used to analyze two policies: the first one in which the central bank acts with discretion and the...
Persistent link: https://www.econbiz.de/10012721384
The regulatory framework established during the Great Depression spared us system-threatening financial failure for nearly four decades after World War II. The author gives a brief history of how the progressive deregulation of the financial system led to the crisis of 2008 and discusses the...
Persistent link: https://www.econbiz.de/10012722373