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Resilience of bank liquidity ratios in the presence of a central bank digital currency

Alissa Gorelova, Bena Lands and Maria teNyenhuis

No 2022-5, Staff Analytical Notes from Bank of Canada

Abstract: Could Canadian banks continue to meet their regulatory liquidity requirements after the introduction of a cash-like retail central bank digital currency (CBDC)? We conduct a hypothetical exercise to estimate how a CBDC could affect bank liquidity by increasing the run-off rates of transactional retail deposits under four increasingly severe scenarios.

Keywords: Central bank research; Digital currencies and fintech; Econometric and statistical methods; Financial institutions; Financial stability (search for similar items in EconPapers)
JEL-codes: E4 G2 G21 O3 O33 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2022-05
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fdg, nep-mac, nep-mon and nep-pay
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