Why Are Canadian Banks More Resilient? /

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 b...

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Detalhes bibliográficos
Autor principal: Huang, Rocco
Outros Autores: Ratnovski, Lev
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2009.
Colecção:IMF Working Papers; Working Paper ; No. 2009/152
Acesso em linha:Full text available on IMF
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520 3 |a 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. 
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