Careers

Role

The Financial Stability Department conducts analysis and research on questions relating to overall financial stability in Canada, including the assessment of the financial system's vulnerability to potentially stressful scenarios and the oversight of clearing and settlement systems that could pose systemic risk. The department also conducts regular monitoring of the financial sector in Canada and abroad and provides analysis and advice on issues addressed by Canadian public authorities and by international organizations such as the Bank of International Settlements. Departmental economists and analysts examine and analyze issues such as: the monitoring of risks to overall financial stability; payment, clearing and settlement systems; and the development of federal financial sector policy.

Organization

Financial Institutions Division analyzes the financial condition and business strategies of major Canadian financial institutions with a perspective on the whole system. This includes detailed monitoring of profits and capital, liquidity management and funding of major banks and involvement in potential lender-of-last-report situations for individual financial institutions. The division also monitors and analyzes the financial condition of major foreign financial institutions and works with OSFI to analyze the regulation and supervision of financial institutions.

Stability Assessment Division analyzes trends in domestic and global financial system liquidity and credit conditions and assesses domestic and global risks to financial stability. This includes developing frameworks and tools to assess the risks to financial stability, and coordinating briefings on financial stability issues for a wide variety of international meetings on those issues. The division is also responsible for coordinating the work supporting the Bank's Financial System Review.

Infrastructure Policy Division is responsible for the oversight of clearing and settlement systems, and conducts analysis and research on issues related to the the broad design of those systems and the legislative and policy framework underpinning the financial sector, including the Bank of Canada Act. It is also involved in coordinating the Bank's lender-of;last-resort and market operations policies.

Financial Studies Division conducts leading-edge longer-term research on a broad range of longer-term issues related to the functioning of the financial system, including: the behaviour of financial institutions the financial condition of households and businesses, the development of a financial stability assessment framework; the regulatory framework for the financial sector; and the optimal design on clearing and settlement systems.

Regulatory Policy Division conducts research and policy analysis on a range of regulatory issues related to financial system, with a particular focus on Financial institutions. The division provides policy recommendations on relevant issues to support the Bank's role in domestic and international fora. This policy advice is supported by theoretical and empirical research on the impact of new regulatory reforms on financial institutions' risk-taking behaviour and the evolution of the financial system; how to manage moral hazard around systemically important financial institutions; how financial institutions market structure can affect risk taking behaviour, stability and efficiency of the financial system; and the evolution of the Bank's role of lender of last resort.