{
  "title": "Why Are Canadian Banks More Resilient?",
  "publication": "IMF Working Papers, July 1, 2009",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- The paper explores factors behind Canadian banks' relative resilience in the ongoing credit turmoil.\n- Two main causes are identified:\n  - a higher share of depository funding (vs. wholesale funding) in liabilities; and\n  - a number of regulatory and structural factors in the Canadian market that reduced banks' incentives to take excessive risks.\n- 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."
    },
    {
      "heading": "Analysis and evidence",
      "content": "- Multivariate analysis covered 72 largest commercial banks in OECD countries during the turmoil.\n- Key explanatory variable highlighted: depository funding ratio (higher share of depository funding versus wholesale funding).\n- Regulatory and structural market characteristics in Canada are emphasized as reducing incentives for excessive risk-taking."
    },
    {
      "heading": "Subjects and focus areas",
      "content": "- Asset and liability management\n- Banking\n- Business enterprises\n- Capital adequacy requirements\n- Economic sectors\n- Financial institutions\n- Financial regulation and supervision\n- Financial statements\n- Liquidity\n- Public financial management (PFM)\n- Stocks"
    },
    {
      "heading": "Keywords",
      "content": "- A. bank Fundamentals\n- Australia and New Zealand\n- balance sheet liquidity\n- bank\n- bank capital regulation\n- bank performance\n- Banking Crisis\n- Business enterprises\n- Canada\n- Canadian bank\n- capital\n- Capital adequacy requirements\n- capital injection\n- Early Warning System\n- Financial Stability\n- Financial statements\n- funding\n- Liquidity\n- price\n- Stocks\n- WP\n\n---\n\n Content in this bundle\n\n- Wp09152\n  - Wp09152 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp09152 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/why-are-canadian-banks-more-resilient-23040"
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    "Authors: Rocco Huang, Lev Ratnovski",
    "Published: July 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872996.001",
    "The paper explores factors behind Canadian banks' relative resilience in the ongoing credit turmoil.",
    "Two main causes are identified:",
    "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.",
    "Multivariate analysis covered 72 largest commercial banks in OECD countries during the turmoil.",
    "Key explanatory variable highlighted: depository funding ratio (higher share of depository funding versus wholesale funding).",
    "Regulatory and structural market characteristics in Canada are emphasized as reducing incentives for excessive risk-taking.",
    "Asset and liability management",
    "Banking",
    "Business enterprises",
    "Capital adequacy requirements",
    "Economic sectors",
    "Financial institutions",
    "Financial regulation and supervision",
    "Financial statements",
    "Liquidity",
    "Public financial management (PFM)",
    "Stocks",
    "A. bank Fundamentals",
    "Australia and New Zealand",
    "balance sheet liquidity",
    "bank",
    "bank capital regulation",
    "bank performance",
    "Banking Crisis",
    "Business enterprises",
    "Canada",
    "Canadian bank",
    "capital",
    "Capital adequacy requirements",
    "capital injection",
    "Early Warning System",
    "Financial Stability",
    "Financial statements",
    "funding",
    "Liquidity",
    "price",
    "Stocks",
    "WP",
    "**Wp09152**"
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