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Bank of Canada Review
Summer 2004
Index of Working Papers | Index of Technical Reports| Title | Canada's Capital Markets: How Do They Measure Up? |
| Author(s) | Sheryl Kennedy |
| Type | Bank of Canada Review article |
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Date of publication |
Summer 2004 |
| Language | English |
| Abstract | In a recent speech, Deputy Governor Sheryl Kennedy discusses how the efficiency of Canada's capital markets compares in a global context. Taking into account the three inter-related aspects of an efficient market (allocational, operational, and informational efficiency), Kennedy reviews the recent performance of Canadian capital markets under such headings as size, completeness, and access to capital and the instruments needed to hedge, or distribute, risk (allocational efficiency). To assess operational efficiency, she considers Canadian markets' liquidity and whether their transactional costs are competitive. Finally, she reviews transparency and market integrity (and how integrity is maintained) to determine markets' informational efficiency. She also offers several suggestions as to how Canadian markets can continue to be improve and maintain their competitiveness. |
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