House prices have increased significantly in Canada over the past decade, driving household debt and residential … Economic Review of Canada (www.oecd.org/eco/surveys/Canada). …

The returns on bank stocks rise and fall with the business cycle, making bank equity financing cheaper in the boom and …

This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …

and the United Kingdom. Banks in both Canada and Australia, for instance, have continued to report enviable earnings … conditional probability of default which measures extreme credit risk.This paper finds that bank risk was significantly similar … a lower base. Bank risk for both countries was found to be far lower than for global counterparts due to factors such as …

We study how debt market frictions that constrain the ability of firms to buffer a tightening in bank credit supply … inability to replace bank loans with corporate bonds. We document that more inflexible firms suffer a bigger increase in yield … spreads as bank credit tightens. The impact is stronger among smaller firms, lower rated firms, and firms relying more on bank …

In the aftermath of the financial crisis, there is interest in reforming bank regulation such that capital requirements … are more closely linked to a bank's contribution to the overall risk of the financial system. In our paper we compare … capital levels and are not related in a simple way to bank size or individual bank default probability. Systemic capital …

The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are … authors analyse the impact of liquid asset holdings on bank profitability for a sample of large U.S. and Canadian banks … that this relationship varies depending on a bank's business model and the state of the economy. These results are …