Central bank finances

Central bank finances
BIS Papers
No 71
by David Archer and Paul Moser-Boehm
Monetary and Economic Department

.

This paper looks at the relevance of a central bank’s own finances for its policy work. Some central banks are exposed to significant financial risks, partly due to the environment in which they operate, and partly due to the nature of policy actions. While financial exposures and losses do not hamper central banks‘ operational capabilities, they may weaken the effectiveness of central bank policy transmission. Against this backdrop, the paper analyses the determinants of a central bank’s financial position and the possible implications of insufficient financial resources for policymaking. It also provides a conceptual framework for considering the question of whether central banks have sufficient financial resources.

• Foreword – 2 pages
• Overview and conclusions – 2 pages
• Introduction – 2 pages
• Part A: Preliminaries: understanding central bank finances – 12 pages
• Part B: What financial resources do central banks have? – 24 pages
• Part C: What level of financial resources do central banks need? – 21 pages
• Part D: Assessing the appropriate amount of financial resources – a framework – 8 pages
• Annex 1: Central bank accounting policies – 5 pages
• Annex 2: Components of selected distribution schemes – 5 pages

Quelle: Bank for International Settlements

.

.

korrespondierende Beiträge

.

Can Central Banks Go Broke ?

.