Op-Eds

For years, criminals from around the world have been secretly investing their proceeds of crime in Canadian real estate simply by registering the property in the name of a private corporation, partnership or trust. That will soon come to an end in British Columbia. Well, almost. The B.C. government recently introduced the Land Owner Transparency Act, which requires corporations, partnerships and trusts to disclose the names of the individuals who control or own them. Those names are then placed on a public registry for all the world to see. This far-reaching legislation applies 21st-century technology to combat the growing problem of money laundering. All Canadians should applaud the B.C. government for its leadership and resolve...
For much of the last decade, Canadians have been told their debt levels were unsustainable and that their day of reckoning was fast approaching. Data recently released by the Office of the Superintendent of Bankruptcy (OSB) seem to indicate that day has arrived. According to the data, insolvencies by Canadian consumers were up 9.2 per cent in October 2018, compared to a year earlier. To say the least, these results appear alarming. But in light of what we know about homeownership and net worth, we are not so sure. The data show that Canadians’ net worth has never been higher. Moreover, the data do not distinguish between the more harmful economic effects from households in negative net asset positions, or balance sheet...
The momentum around initial coin offerings (ICOs) continues to build. Since 2016, when less than US$100-million in ICOs was issued, more than $20-billion in capital has been raised. By the end of 2017, ICO funding originating in Canada totalled $175-million, good for eighth worldwide. Naturally, skepticism of such a bonanza abounds. This is perhaps especially true when we talk about cryptocurrencies that, in and of themselves, have no value and seem ripe for fraud. However, despite these valid concerns, in a recent C.D. Howe Institute commentary, we argue that ICOs do indeed fill a market gap, under limited circumstances. What is critical for regulators and investors is determining these circumstances. ICOs are a form of...
As was widely expected, the Bank of Canada announced on Wednesday that it was not changing its target overnight rate. Despite the announcement reinforcing expectations, the emphasis on caution was enough to knock more than a half a cent off the value of the Canadian dollar before the end of Wednesday morning. With uncertainty on the horizon for 2018, the year promises to be a challenging one for our central bankers – one that will require market guidance. The overall tone was balanced and the announcement emphasized caution. The global economy is in good shape with U.S. growth in the third quarter stronger than expected. Risks, however, remain in the form of geopolitics and trade. It also simultaneously warned that "higher rates will...
Canada has unfinished business when it comes to preparing for the next big financial crisis. Certainly, our financial system held up comparatively well in the 2008 crisis, and lots has been done, but we have shortcomings still to address. When the International Monetary Fund last reviewed Canada's financial system in 2014, it recommended we do better in managing federal-provincial co-ordination around systemic risk oversight, and improve systemic risk management in capital markets. The IMF will return soon for an update assessment. So the question is, how are we doing? As argued in a recent C.D. Howe Institute paper, Canadians should expect a higher level of preparedness from all relevant federal and provincial authorities. Then...