The rise of non-regulated financial intermediaries in the housing sector and its macroeconomic implications / by Hélène Desgagnés.: FB3-5/2017-36E-PDF
“The author examines the impact of non-regulated lenders in the mortgage market using a dynamic stochastic general equilibrium (DSGE) model. The model features two types of financial intermediaries that differ in three ways: (i) only regulated intermediaries face a capital requirement, (ii) non-regulated intermediaries finance themselves by selling securities and cannot accept deposits, and (iii) non-regulated intermediaries face a more elastic demand. This last assumption is based on empirical evidence for Canada revealing that non-regulated intermediaries issue loans at a lower interest rate. The results suggest that the non-regulated sector contributes to stabilize the economy by providing an alternative source of capital when the regulated sector in unable to fulfill the demand for credit. As a result, an economy with a large non-regulated sector experiences a smaller downturn after an adverse financial shock"--Abstract, p. ii.
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | The rise of non-regulated financial intermediaries in the housing sector and its macroeconomic implications / by Hélène Desgagnés. |
| Series title | Bank of Canada staff working paper, 1701-9397 ; 2017-36 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "September 2017." Includes bibliographical references (32-33). Includes abstract in French. |
| Publishing information | [Ottawa] : Bank of Canada, 2017. |
| Author / Contributor | Desgagnés, Hélène. |
| Description | ii, 44 p. : col. charts |
| Catalogue number |
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| Subject terms | Housing Loans Regulation Statistical analysis |
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