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Bank of Canada Review
Autumn 2004
Index of Working Papers | Index of Technical Reports| Title | The Evolving Financial System and Public Policy: Conference Highlights and Lessons |
| Author(s) | Pierre St-Amant and Carolyn Wilkins |
| Type | Bank of Canada Review article |
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Date of publication |
Autumn 2004 |
| Language | English |
| Abstract | At the 12th annual Bank of Canada economic conference, held in Ottawa on 4 and 5 December 2003, representatives from various public and private organizations and Bank of Canada staff discussed papers presented on three key issues affecting the financial system: financial contagion, the implications of bank diversification, and financial sector regulation. Papers on financial contagion studied the effect of globalization on Canadian foreign-asset exposures, developed a general-equilibrium model of a competitive interfirm lending market in which firms can borrow or lend, and used market-based indicators to determine the probability that contagion can be generated by interbank exposures. The papers on bank diversification focused on the links between the changing behaviour of financial institutions and risk-return trade-offs. Issues of financial sector regulation included the relationship between governance and financial sector soundness, the theoretical basis of bank regulations for capital requirements, and the implications of bank capital requirements for the transmission of monetary policy. A panel discussion provided extended discussion of the conference papers. |
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Bank topic index |
Financial Institutions, Financial Markets, Financial Services |
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JEL classification |
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