00000cam 2200000zi 4500 9.964129 CaOODSP 20260713091248 m o d f cr cn||||||||| 260710t20262026onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-8/2026-30E-PDF Priazhkina, Sofia, author. The impact of potential retail central bank digital currency on the Canadian financial system during a severe recession / Sofia Priazhkina. [Ottawa] : Bank of Canada = Banque du Canada, 2026. ©2026 1 online resource (ii, 44 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff analytical paper = Document analytique du personnel, 3110-9195 ; 2026-30 "Last updated: June 15, 2026." Includes bibliographical references (pages 40-44). "This policy note examines how a non-interest-bearing retail central bank digital currency (CBDC) could affect the financial stability of Canada's systemically important banks during a severe recession. Stress test results show that the banks remain resilient, maintaining key regulatory ratios even under high CBDC demand. To manage funding outflows, banks scale back balance sheet growth and replace some lost deposits with alternative funding. Profitability stays strong overall, though short-term volatility may occur. To reduce potential risks, the note recommends a gradual CBDC rollout with holding limits, well-timed capital buffer adjustments, early communication of regulatory changes, and coordination with central bank balance sheet policies"--Abstract, page ii. Includes abstracts in English and French. Central bank digital currencies Canada. Monetary policy Canada. Banks and banking Canada. Recessions Canada. Monnaie numérique de banque centrale Canada. Politique monétaire Canada. Banques Canada. Récessions Canada. Bank of Canada, issuing body. Staff analytical paper (Bank of Canada) 3110-9195 ; 2026-30. (CaOODSP)9.958938 PDF 1.72 MB https://publications.gc.ca/collections/collection_2026/banque-bank-canada/FB3-8-2026-30-eng.pdf