Why Are Canadian Banks More Resilient?

WPIEA2009152 Image
Price:  $18.00

Author/Editor: Rocco Huang, Lev Ratnovski
Release Date: © July, 2009
ISBN : 978-1-45187-299-6
Stock #: WPIEA2009152
English
Stock Status: On back-order

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Description

This paper explores factors behind Canadian banks' relative resilience in the ongoing credit turmoil. We identify two main causes: a higher share of depository funding (vs. wholesale funding) in liabilities, and a number of regulatory and structural factors in the Canadian market that reduced banks' incentives to take excessive risks. The robust predictive power of the depository funding ratio is confirmed in a multivariate analysis of the performance of 72 largest commercial banks in OECD countries during the turmoil.

Taxonomy

Balance of payments , Bank regulations , Banks and banking , Economic policy , Financial institutions and markets , Fiscal policy , Inflation , Monetary policy




More publications in this series: Working Papers


More publications by: Rocco Huang ; Lev Ratnovski