The authors empirically analyze the price-setting behaviour of the major Canadian banks in the residential mortgage market over the period 19912007. They use weekly posted prices of the major mortgage providers to study the degree of competition in mortgage price setting. Their results suggest...

This paper develops and simulates a model of the emergence of networks in an interbank, RTGS payment system. A number of banks, faced with random streams of payment orders, choose whether to link directly to the payment system, or to use a correspondent bank. Settling payments directly on the...

We study the impact of ambiguity on two alternative institutions of financial intermediation in an economy where consumers face uncertain liquidity needs. The ambiguity the consumers experience is modeled by the degree of confidence in their additive beliefs. We analyze the optimal liquidity...