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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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Publication information
Department/Agency
  • Bank of Canada.
TitleThe 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 typeMonograph - View Master Record
Language[English]
FormatDigital text
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.
Descriptionii, 44 p. : col. charts
Catalogue number
  • FB3-5/2017-36E-PDF
Subject terms
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