The potential effect of a central bank digital currency on deposit funding in Canada

Alejandro Garcia, Bena Lands, Xuezhi Liu and Joshua Slive

No 2020-15, Staff Analytical Notes from Bank of Canada

Abstract: A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding. We look at the potential implications increased competition for deposit funding could have on income and liquidity for the six largest Canadian banks, using regulatory data from 2018 and 2019.

Keywords: Digital currencies and fintech; Financial institutions; Financial stability (search for similar items in EconPapers)
JEL-codes: E4 E41 E44 E5 G1 G10 G17 G2 G21 G3 G32 O (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon and nep-pay
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Citations: View citations in EconPapers (9)

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