Central bank finances, by David Archer and Paul Moser-Boehm

By David Archer and Paul Moser-Boehm

BIS Papers No 71
April 2013

http://www.bis.org/publ/bppdf/bispap71.htm

 

 

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.

JEL classification: E58, E61, G01, M41

	Title	Languages
	Foreword	EN
	Overview and conclusions	EN
	Introduction	EN
	Part A: Preliminaries: understanding central bank finances	EN
	Part B: What financial resources do central banks have?	EN
	Part C: What level of financial resources do central banks need?	EN
	Part D: Assessing the appropriate amount of financial resources - a framework	EN
	Annex 1: Central bank accounting policies	EN
	Annex 2: Components of selected distribution schemes	EN