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Forecasting banks’ corporate loan losses under stress : new corporate default model / by Gabriel Bruneau, Thibaut Duprey and Ruben Hipp.FB3-1/122-2022E-PDF

"We develop a corporate default model to forecast corporate loan losses of the Canadian banking sector under stress. First, we tackle a data gap by reconstructing historical default probabilities for banks’ loan portfolios. Second, we estimate tail elasticities to capture nonlinear relationships between macrofinancial conditions and default probabilities. By explicitly modelling default probabilities associated with macroeconomic tail events, this model significantly improves the Bank of Canada’s stress-testing infrastructure"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.916417&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleForecasting banks’ corporate loan losses under stress : new corporate default model / by Gabriel Bruneau, Thibaut Duprey and Ruben Hipp.
Series title
  • Technical report = Rapport technique, 1919-689X ; 122
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: October 3, 2022."
  • Includes bibliographical references (pages 44-46).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2022.
  • ©2022
Author / Contributor
  • Bruneau, Gabriel, author.
Description1 online resource (ii, 46 pages) : charts.
Catalogue number
  • FB3-1/122-2022E-PDF
Subject terms
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