00000nam 2200000za 4500 9.827041 CaOODSP 20221123094558 cr ||||||||||| 161107s2016 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2016-47E-PDF Cociuba, Simona E. Managing risk taking with interest rate policy and macroprudential regulations [electronic resource] / by Simona E. Cociuba, Malik Shukayev, and Alexander Ueberfeldt. [Ottawa] : Bank of Canada, c2016. ii, 51 p. Staff Working Paper, 1701-9397 ; 2016-47 "November 2016." Includes bibliographical references (p. 33-35). "We develop a model in which a financial intermediary’s investment in risky assets—risktaking— is excessive due to limited liability and deposit insurance and characterize thepolicy tools that implement efficient risk taking. In the calibrated model, coordinatinginterest rate policy with state-contingent macroprudential regulations, either capital orleverage regulation, and a tax on profits achieves efficiency. Interest rate policy mitigatesexcessive risk taking by altering both the return and the supply of collateralizable safeassets. In contrast to commonly used capital regulation, leverage regulation has strongereffects on risk taking and calls for higher interest rates"--Abstract, p. ii. Includes abstract in French. gccst Interest rates gccst Investments gccst Monetary policy gccst Risk management Shukayev, Malik. Ueberfeldt, Alexander. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2016-47 (CaOODSP)9.806221 PDF 1.06 MB https://publications.gc.ca/collections/collection_2016/banque-bank-canada/FB3-5-2016-47-eng.pdf