Bank of Canada

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  • Discounting In Mortgage Markets

    White Papers // Feb 2011 // provided by Bank of Canada

    This paper explains about discounting in mortgage markets. Using transaction-level data on Canadian mortgages, the authors document that over time there's been an increase in the average discount, along with substantial dispersion. The standard explanation for dispersion in credit markets is that lenders engage in risk-based pricing. The setting is ...

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  • Banks, Credit Market Frictions, And Business Cycles

    White Papers // Jul 2010 // provided by Bank of Canada

    This paper proposes a fully micro-founded framework that incorporates an active banking sector into a DSGE model with a financial accelerator. Then, it evaluates the role and importance of banks' behavior and financial shocks in U.S. business cycles. The banking sector consists of two types of profit-maximizing banks that offer ...

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  • Bank Of Canada's Participation In The 2007 FSAP Macro Stress-Testing Exercise

    White Papers // Oct 2007 // provided by Bank of Canada

    In this paper, the authors discuss the Bank of Canada (Bank) participation in Canada's 2007 Financial Sector Assessment Program (FSAP) stress-testing exercise. They describe general features of the macroeconomic scenario that was selected and explain how this scenario was translated into sectoral default rates. They also describe the top-down exercise ...

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